Correlation Between Surgical Science and Oncopeptides
Can any of the company-specific risk be diversified away by investing in both Surgical Science and Oncopeptides 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 Surgical Science and Oncopeptides into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Surgical Science Sweden and Oncopeptides AB, you can compare the effects of market volatilities on Surgical Science and Oncopeptides 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 Surgical Science with a short position of Oncopeptides. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surgical Science and Oncopeptides.
Diversification Opportunities for Surgical Science and Oncopeptides
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Surgical and Oncopeptides is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Surgical Science Sweden and Oncopeptides AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oncopeptides AB and Surgical Science 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 Surgical Science Sweden are associated (or correlated) with Oncopeptides. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oncopeptides AB has no effect on the direction of Surgical Science i.e., Surgical Science and Oncopeptides go up and down completely randomly.
Pair Corralation between Surgical Science and Oncopeptides
Assuming the 90 days trading horizon Surgical Science Sweden is expected to generate 0.67 times more return on investment than Oncopeptides. However, Surgical Science Sweden is 1.48 times less risky than Oncopeptides. It trades about 0.2 of its potential returns per unit of risk. Oncopeptides AB is currently generating about -0.17 per unit of risk. If you would invest 12,950 in Surgical Science Sweden on August 30, 2024 and sell it today you would earn a total of 2,170 from holding Surgical Science Sweden or generate 16.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Surgical Science Sweden vs. Oncopeptides AB
Performance |
| Timeline |
| Surgical Science Sweden |
| Oncopeptides AB |
Surgical Science and Oncopeptides Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surgical Science and Oncopeptides
The main advantage of trading using opposite Surgical Science and Oncopeptides positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surgical Science position performs unexpectedly, Oncopeptides 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 Oncopeptides will offset losses from the drop in Oncopeptides' long position.| Surgical Science vs. BICO Group AB | Surgical Science vs. Hexatronic Group AB | Surgical Science vs. Swedencare publ AB | Surgical Science vs. MIPS AB |
| Oncopeptides vs. Hansa Biopharma AB | Oncopeptides vs. BioArctic AB | Oncopeptides vs. Sinch AB | Oncopeptides vs. Cantargia 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Global Correlations Find global opportunities by holding instruments from different markets |