Correlation Between SEB SA and Quantum Genomics
Can any of the company-specific risk be diversified away by investing in both SEB SA and Quantum Genomics 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 SEB SA and Quantum Genomics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEB SA and Quantum Genomics SA, you can compare the effects of market volatilities on SEB SA and Quantum Genomics 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 SEB SA with a short position of Quantum Genomics. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEB SA and Quantum Genomics.
Diversification Opportunities for SEB SA and Quantum Genomics
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SEB and Quantum is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding SEB SA and Quantum Genomics SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quantum Genomics and SEB SA 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 SEB SA are associated (or correlated) with Quantum Genomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quantum Genomics has no effect on the direction of SEB SA i.e., SEB SA and Quantum Genomics go up and down completely randomly.
Pair Corralation between SEB SA and Quantum Genomics
Assuming the 90 days horizon SEB SA is expected to under-perform the Quantum Genomics. But the stock apears to be less risky and, when comparing its historical volatility, SEB SA is 12.77 times less risky than Quantum Genomics. The stock trades about -0.04 of its potential returns per unit of risk. The Quantum Genomics SA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Quantum Genomics SA on August 29, 2024 and sell it today you would lose (3.79) from holding Quantum Genomics SA or give up 34.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.53% |
| Values | Daily Returns |
SEB SA vs. Quantum Genomics SA
Performance |
| Timeline |
| SEB SA |
| Quantum Genomics |
SEB SA and Quantum Genomics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEB SA and Quantum Genomics
The main advantage of trading using opposite SEB SA and Quantum Genomics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEB SA position performs unexpectedly, Quantum Genomics 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 Quantum Genomics will offset losses from the drop in Quantum Genomics' long position.The idea behind SEB SA and Quantum Genomics SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Quantum Genomics vs. Poxel SA | Quantum Genomics vs. Biophytis SA | Quantum Genomics vs. Gensight Biologics SA | Quantum Genomics vs. OSE Pharma SA |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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