Correlation Between Stenocare and Cessatech
Can any of the company-specific risk be diversified away by investing in both Stenocare and Cessatech 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 Stenocare and Cessatech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stenocare AS and Cessatech AS, you can compare the effects of market volatilities on Stenocare and Cessatech 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 Stenocare with a short position of Cessatech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stenocare and Cessatech.
Diversification Opportunities for Stenocare and Cessatech
Significant diversification
The 3 months correlation between Stenocare and Cessatech is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Stenocare AS and Cessatech AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cessatech AS and Stenocare 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 Stenocare AS are associated (or correlated) with Cessatech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cessatech AS has no effect on the direction of Stenocare i.e., Stenocare and Cessatech go up and down completely randomly.
Pair Corralation between Stenocare and Cessatech
Assuming the 90 days trading horizon Stenocare AS is expected to generate 3.73 times more return on investment than Cessatech. However, Stenocare is 3.73 times more volatile than Cessatech AS. It trades about 0.1 of its potential returns per unit of risk. Cessatech AS is currently generating about -0.03 per unit of risk. If you would invest 134.00 in Stenocare AS on September 13, 2024 and sell it today you would earn a total of 20.00 from holding Stenocare AS or generate 14.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stenocare AS vs. Cessatech AS
Performance |
| Timeline |
| Stenocare AS |
| Cessatech AS |
Stenocare and Cessatech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stenocare and Cessatech
The main advantage of trading using opposite Stenocare and Cessatech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stenocare position performs unexpectedly, Cessatech 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 Cessatech will offset losses from the drop in Cessatech's long position.| Stenocare vs. Cessatech AS | Stenocare vs. BankIn Bredygt Klimaakt | Stenocare vs. NTG Nordic Transport | Stenocare vs. TROPHY GAMES Development |
| Cessatech vs. Novo Nordisk AS | Cessatech vs. Nordea Bank Abp | Cessatech vs. DSV Panalpina AS | Cessatech vs. AP Mller |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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