Correlation Between Simris Alg and Cantargia
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By analyzing existing cross correlation between Simris Alg AB and Cantargia AB, you can compare the effects of market volatilities on Simris Alg and Cantargia and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Simris Alg with a short position of Cantargia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simris Alg and Cantargia.
Diversification Opportunities for Simris Alg and Cantargia
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Simris and Cantargia is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Simris Alg AB and Cantargia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cantargia AB and Simris Alg is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Simris Alg AB are associated (or correlated) with Cantargia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cantargia AB has no effect on the direction of Simris Alg i.e., Simris Alg and Cantargia go up and down completely randomly.
Pair Corralation between Simris Alg and Cantargia
Assuming the 90 days trading horizon Simris Alg AB is expected to under-perform the Cantargia. In addition to that, Simris Alg is 1.52 times more volatile than Cantargia AB. It trades about -0.03 of its total potential returns per unit of risk. Cantargia AB is currently generating about -0.04 per unit of volatility. If you would invest 418.00 in Cantargia AB on September 12, 2024 and sell it today you would lose (239.00) from holding Cantargia AB or give up 57.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simris Alg AB vs. Cantargia AB
Performance |
| Timeline |
| Simris Alg AB |
| Cantargia AB |
Simris Alg and Cantargia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simris Alg and Cantargia
The main advantage of trading using opposite Simris Alg and Cantargia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simris Alg position performs unexpectedly, Cantargia can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cantargia will offset losses from the drop in Cantargia's long position.| Simris Alg vs. SenzaGen AB | Simris Alg vs. AAK AB | Simris Alg vs. Scibase AB | Simris Alg vs. Scandinavian Enviro Systems |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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