Correlation Between Trematon Capital and Ascendis Health
Can any of the company-specific risk be diversified away by investing in both Trematon Capital and Ascendis Health 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 Trematon Capital and Ascendis Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trematon Capital Investments and Ascendis Health, you can compare the effects of market volatilities on Trematon Capital and Ascendis Health 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 Trematon Capital with a short position of Ascendis Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trematon Capital and Ascendis Health.
Diversification Opportunities for Trematon Capital and Ascendis Health
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Trematon and Ascendis is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Trematon Capital Investments and Ascendis Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascendis Health and Trematon Capital 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 Trematon Capital Investments are associated (or correlated) with Ascendis Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascendis Health has no effect on the direction of Trematon Capital i.e., Trematon Capital and Ascendis Health go up and down completely randomly.
Pair Corralation between Trematon Capital and Ascendis Health
Assuming the 90 days trading horizon Trematon Capital is expected to generate 1.28 times less return on investment than Ascendis Health. In addition to that, Trematon Capital is 1.42 times more volatile than Ascendis Health. It trades about 0.01 of its total potential returns per unit of risk. Ascendis Health is currently generating about 0.02 per unit of volatility. If you would invest 6,800 in Ascendis Health on August 27, 2024 and sell it today you would earn a total of 600.00 from holding Ascendis Health or generate 8.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Trematon Capital Investments vs. Ascendis Health
Performance |
| Timeline |
| Trematon Capital Inv |
| Ascendis Health |
Trematon Capital and Ascendis Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trematon Capital and Ascendis Health
The main advantage of trading using opposite Trematon Capital and Ascendis Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trematon Capital position performs unexpectedly, Ascendis Health 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 Ascendis Health will offset losses from the drop in Ascendis Health's long position.| Trematon Capital vs. Centaur Bci Balanced | Trematon Capital vs. Sabvest Capital | Trematon Capital vs. Growthpoint Properties | Trematon Capital vs. Bowler Metcalf |
| Ascendis Health vs. Trematon Capital Investments | Ascendis Health vs. Hosken Consolidated Investments | Ascendis Health vs. Allied Electronics | Ascendis Health vs. Kumba Iron Ore |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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