Correlation Between Stayble Therapeutics and Hansa Biopharma
Can any of the company-specific risk be diversified away by investing in both Stayble Therapeutics and Hansa Biopharma 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 Stayble Therapeutics and Hansa Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stayble Therapeutics AB and Hansa Biopharma AB, you can compare the effects of market volatilities on Stayble Therapeutics and Hansa Biopharma 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 Stayble Therapeutics with a short position of Hansa Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stayble Therapeutics and Hansa Biopharma.
Diversification Opportunities for Stayble Therapeutics and Hansa Biopharma
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Stayble and Hansa is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Stayble Therapeutics AB and Hansa Biopharma AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hansa Biopharma AB and Stayble Therapeutics 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 Stayble Therapeutics AB are associated (or correlated) with Hansa Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hansa Biopharma AB has no effect on the direction of Stayble Therapeutics i.e., Stayble Therapeutics and Hansa Biopharma go up and down completely randomly.
Pair Corralation between Stayble Therapeutics and Hansa Biopharma
Assuming the 90 days trading horizon Stayble Therapeutics AB is expected to under-perform the Hansa Biopharma. In addition to that, Stayble Therapeutics is 1.69 times more volatile than Hansa Biopharma AB. It trades about -0.14 of its total potential returns per unit of risk. Hansa Biopharma AB is currently generating about -0.13 per unit of volatility. If you would invest 3,630 in Hansa Biopharma AB on September 1, 2024 and sell it today you would lose (380.00) from holding Hansa Biopharma AB or give up 10.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Stayble Therapeutics AB vs. Hansa Biopharma AB
Performance |
| Timeline |
| Stayble Therapeutics |
| Hansa Biopharma AB |
Stayble Therapeutics and Hansa Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stayble Therapeutics and Hansa Biopharma
The main advantage of trading using opposite Stayble Therapeutics and Hansa Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stayble Therapeutics position performs unexpectedly, Hansa Biopharma 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 Hansa Biopharma will offset losses from the drop in Hansa Biopharma's long position.| Stayble Therapeutics vs. Hansa Biopharma AB | Stayble Therapeutics vs. Saniona AB | Stayble Therapeutics vs. Oncopeptides 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |