Correlation Between Sprint Bioscience and Kancera AB
Can any of the company-specific risk be diversified away by investing in both Sprint Bioscience and Kancera AB 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 Sprint Bioscience and Kancera AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sprint Bioscience AB and Kancera AB, you can compare the effects of market volatilities on Sprint Bioscience and Kancera AB 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 Sprint Bioscience with a short position of Kancera AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sprint Bioscience and Kancera AB.
Diversification Opportunities for Sprint Bioscience and Kancera AB
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sprint and Kancera is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Sprint Bioscience AB and Kancera AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kancera AB and Sprint Bioscience 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 Sprint Bioscience AB are associated (or correlated) with Kancera AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kancera AB has no effect on the direction of Sprint Bioscience i.e., Sprint Bioscience and Kancera AB go up and down completely randomly.
Pair Corralation between Sprint Bioscience and Kancera AB
Assuming the 90 days trading horizon Sprint Bioscience AB is expected to generate 0.62 times more return on investment than Kancera AB. However, Sprint Bioscience AB is 1.6 times less risky than Kancera AB. It trades about 0.06 of its potential returns per unit of risk. Kancera AB is currently generating about 0.0 per unit of risk. If you would invest 139.00 in Sprint Bioscience AB on September 3, 2024 and sell it today you would earn a total of 43.00 from holding Sprint Bioscience AB or generate 30.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sprint Bioscience AB vs. Kancera AB
Performance |
| Timeline |
| Sprint Bioscience |
| Kancera AB |
Sprint Bioscience and Kancera AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sprint Bioscience and Kancera AB
The main advantage of trading using opposite Sprint Bioscience and Kancera AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sprint Bioscience position performs unexpectedly, Kancera AB 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 Kancera AB will offset losses from the drop in Kancera AB's long position.| Sprint Bioscience vs. Cantargia AB | Sprint Bioscience vs. Saniona AB | Sprint Bioscience vs. Acarix AS | Sprint Bioscience vs. Gabather AB |
| Kancera AB vs. Combigene AB | Kancera AB vs. Cantargia AB | Kancera AB vs. Fingerprint Cards AB | Kancera AB vs. Spectrumone publ 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |