Correlation Between Spectrumone Publ and Cantargia
Can any of the company-specific risk be diversified away by investing in both Spectrumone Publ and Cantargia 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 Spectrumone Publ and Cantargia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spectrumone publ AB and Cantargia AB, you can compare the effects of market volatilities on Spectrumone Publ 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 Spectrumone Publ with a short position of Cantargia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spectrumone Publ and Cantargia.
Diversification Opportunities for Spectrumone Publ and Cantargia
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Spectrumone and Cantargia is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Spectrumone publ AB and Cantargia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cantargia AB and Spectrumone Publ 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 Spectrumone publ 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 Spectrumone Publ i.e., Spectrumone Publ and Cantargia go up and down completely randomly.
Pair Corralation between Spectrumone Publ and Cantargia
Assuming the 90 days trading horizon Spectrumone publ AB is expected to generate 0.61 times more return on investment than Cantargia. However, Spectrumone publ AB is 1.64 times less risky than Cantargia. It trades about -0.16 of its potential returns per unit of risk. Cantargia AB is currently generating about -0.25 per unit of risk. If you would invest 37.00 in Spectrumone publ AB on August 28, 2024 and sell it today you would lose (6.00) from holding Spectrumone publ AB or give up 16.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Spectrumone publ AB vs. Cantargia AB
Performance |
| Timeline |
| Spectrumone publ |
| Cantargia AB |
Spectrumone Publ and Cantargia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spectrumone Publ and Cantargia
The main advantage of trading using opposite Spectrumone Publ and Cantargia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spectrumone Publ 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.| Spectrumone Publ vs. Media and Games | Spectrumone Publ vs. Enersize Oy | Spectrumone Publ vs. Cantargia AB |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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