Correlation Between Ultimovacs ASA and Exact Therapeutics
Can any of the company-specific risk be diversified away by investing in both Ultimovacs ASA and Exact Therapeutics 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 Ultimovacs ASA and Exact Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ultimovacs ASA and Exact Therapeutics AS, you can compare the effects of market volatilities on Ultimovacs ASA and Exact Therapeutics 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 Ultimovacs ASA with a short position of Exact Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultimovacs ASA and Exact Therapeutics.
Diversification Opportunities for Ultimovacs ASA and Exact Therapeutics
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ultimovacs and Exact is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Ultimovacs ASA and Exact Therapeutics AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exact Therapeutics and Ultimovacs ASA 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 Ultimovacs ASA are associated (or correlated) with Exact Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exact Therapeutics has no effect on the direction of Ultimovacs ASA i.e., Ultimovacs ASA and Exact Therapeutics go up and down completely randomly.
Pair Corralation between Ultimovacs ASA and Exact Therapeutics
If you would invest (100.00) in Ultimovacs ASA on November 2, 2024 and sell it today you would earn a total of 100.00 from holding Ultimovacs ASA or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Ultimovacs ASA vs. Exact Therapeutics AS
Performance |
| Timeline |
| Ultimovacs ASA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Exact Therapeutics |
Ultimovacs ASA and Exact Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ultimovacs ASA and Exact Therapeutics
The main advantage of trading using opposite Ultimovacs ASA and Exact Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultimovacs ASA position performs unexpectedly, Exact Therapeutics 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 Exact Therapeutics will offset losses from the drop in Exact Therapeutics' long position.The idea behind Ultimovacs ASA and Exact Therapeutics AS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Exact Therapeutics vs. Helgeland Sparebank | Exact Therapeutics vs. Golden Energy Offshore | Exact Therapeutics vs. Sogn Sparebank | Exact Therapeutics vs. Goodtech |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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