Correlation Between Sinch AB and Oncopeptides
Can any of the company-specific risk be diversified away by investing in both Sinch AB and Oncopeptides at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Sinch AB and Oncopeptides into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sinch AB and Oncopeptides AB, you can compare the effects of market volatilities on Sinch AB and Oncopeptides 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 Sinch AB with a short position of Oncopeptides. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinch AB and Oncopeptides.
Diversification Opportunities for Sinch AB and Oncopeptides
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinch and Oncopeptides is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Sinch AB and Oncopeptides AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oncopeptides AB and Sinch AB 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 Sinch AB are associated (or correlated) with Oncopeptides. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oncopeptides AB has no effect on the direction of Sinch AB i.e., Sinch AB and Oncopeptides go up and down completely randomly.
Pair Corralation between Sinch AB and Oncopeptides
Assuming the 90 days trading horizon Sinch AB is expected to generate 0.65 times more return on investment than Oncopeptides. However, Sinch AB is 1.55 times less risky than Oncopeptides. It trades about 0.22 of its potential returns per unit of risk. Oncopeptides AB is currently generating about 0.02 per unit of risk. If you would invest 2,105 in Sinch AB on November 3, 2024 and sell it today you would earn a total of 256.00 from holding Sinch AB or generate 12.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sinch AB vs. Oncopeptides AB
Performance |
| Timeline |
| Sinch AB |
| Oncopeptides AB |
Sinch AB and Oncopeptides Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinch AB and Oncopeptides
The main advantage of trading using opposite Sinch AB and Oncopeptides positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinch AB position performs unexpectedly, Oncopeptides 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 Oncopeptides will offset losses from the drop in Oncopeptides' long position.| Sinch AB vs. Embracer Group AB | Sinch AB vs. Samhllsbyggnadsbolaget i Norden | Sinch AB vs. Evolution AB | Sinch AB vs. Stillfront Group AB |
| Oncopeptides vs. Hansa Biopharma AB | Oncopeptides vs. BioArctic AB | Oncopeptides vs. Sinch AB | Oncopeptides vs. Cantargia AB |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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