Correlation Between Stayble Therapeutics and NextCell Pharma
Can any of the company-specific risk be diversified away by investing in both Stayble Therapeutics and NextCell Pharma 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 NextCell Pharma 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 NextCell Pharma AB, you can compare the effects of market volatilities on Stayble Therapeutics and NextCell Pharma 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 NextCell Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stayble Therapeutics and NextCell Pharma.
Diversification Opportunities for Stayble Therapeutics and NextCell Pharma
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stayble and NextCell is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Stayble Therapeutics AB and NextCell Pharma AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NextCell Pharma 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 NextCell Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NextCell Pharma AB has no effect on the direction of Stayble Therapeutics i.e., Stayble Therapeutics and NextCell Pharma go up and down completely randomly.
Pair Corralation between Stayble Therapeutics and NextCell Pharma
Assuming the 90 days trading horizon Stayble Therapeutics AB is expected to generate 0.94 times more return on investment than NextCell Pharma. However, Stayble Therapeutics AB is 1.06 times less risky than NextCell Pharma. It trades about 0.02 of its potential returns per unit of risk. NextCell Pharma AB is currently generating about 0.0 per unit of risk. If you would invest 362.00 in Stayble Therapeutics AB on September 1, 2024 and sell it today you would lose (305.00) from holding Stayble Therapeutics AB or give up 84.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stayble Therapeutics AB vs. NextCell Pharma AB
Performance |
| Timeline |
| Stayble Therapeutics |
| NextCell Pharma AB |
Stayble Therapeutics and NextCell Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stayble Therapeutics and NextCell Pharma
The main advantage of trading using opposite Stayble Therapeutics and NextCell Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stayble Therapeutics position performs unexpectedly, NextCell Pharma 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 NextCell Pharma will offset losses from the drop in NextCell Pharma's long position.| Stayble Therapeutics vs. Hansa Biopharma AB | Stayble Therapeutics vs. Saniona AB | Stayble Therapeutics vs. Oncopeptides AB |
| NextCell Pharma vs. Diamyd Medical AB | NextCell Pharma vs. Mendus AB | NextCell Pharma vs. Vicore Pharma Holding | NextCell Pharma vs. Immunovia 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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