Correlation Between Stille AB and Clinical Laserthermia
Can any of the company-specific risk be diversified away by investing in both Stille AB and Clinical Laserthermia 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 Stille AB and Clinical Laserthermia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stille AB and Clinical Laserthermia Systems, you can compare the effects of market volatilities on Stille AB and Clinical Laserthermia 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 Stille AB with a short position of Clinical Laserthermia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stille AB and Clinical Laserthermia.
Diversification Opportunities for Stille AB and Clinical Laserthermia
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Stille and Clinical is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Stille AB and Clinical Laserthermia Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clinical Laserthermia and Stille AB 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 Stille AB are associated (or correlated) with Clinical Laserthermia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clinical Laserthermia has no effect on the direction of Stille AB i.e., Stille AB and Clinical Laserthermia go up and down completely randomly.
Pair Corralation between Stille AB and Clinical Laserthermia
Assuming the 90 days trading horizon Stille AB is expected to generate 0.24 times more return on investment than Clinical Laserthermia. However, Stille AB is 4.2 times less risky than Clinical Laserthermia. It trades about 0.07 of its potential returns per unit of risk. Clinical Laserthermia Systems is currently generating about -0.01 per unit of risk. If you would invest 11,664 in Stille AB on September 3, 2024 and sell it today you would earn a total of 10,336 from holding Stille AB or generate 88.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stille AB vs. Clinical Laserthermia Systems
Performance |
| Timeline |
| Stille AB |
| Clinical Laserthermia |
Stille AB and Clinical Laserthermia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stille AB and Clinical Laserthermia
The main advantage of trading using opposite Stille AB and Clinical Laserthermia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stille AB position performs unexpectedly, Clinical Laserthermia 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 Clinical Laserthermia will offset losses from the drop in Clinical Laserthermia's long position.| Stille AB vs. C Rad AB | Stille AB vs. CellaVision AB | Stille AB vs. Boule Diagnostics AB | Stille AB vs. Genovis AB |
| Clinical Laserthermia vs. Cantargia AB | Clinical Laserthermia vs. Episurf Medical AB | Clinical Laserthermia vs. Karolinska Development AB | Clinical Laserthermia vs. Acarix AS |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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