Correlation Between VIMAB Group and Cell Impact
Can any of the company-specific risk be diversified away by investing in both VIMAB Group and Cell Impact 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 VIMAB Group and Cell Impact into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VIMAB Group AB and Cell Impact AB, you can compare the effects of market volatilities on VIMAB Group and Cell Impact 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 VIMAB Group with a short position of Cell Impact. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIMAB Group and Cell Impact.
Diversification Opportunities for VIMAB Group and Cell Impact
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between VIMAB and Cell is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding VIMAB Group AB and Cell Impact AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cell Impact AB and VIMAB Group 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 VIMAB Group AB are associated (or correlated) with Cell Impact. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cell Impact AB has no effect on the direction of VIMAB Group i.e., VIMAB Group and Cell Impact go up and down completely randomly.
Pair Corralation between VIMAB Group and Cell Impact
Assuming the 90 days trading horizon VIMAB Group AB is expected to under-perform the Cell Impact. In addition to that, VIMAB Group is 1.56 times more volatile than Cell Impact AB. It trades about -0.37 of its total potential returns per unit of risk. Cell Impact AB is currently generating about -0.25 per unit of volatility. If you would invest 21.00 in Cell Impact AB on August 30, 2024 and sell it today you would lose (4.00) from holding Cell Impact AB or give up 19.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
VIMAB Group AB vs. Cell Impact AB
Performance |
| Timeline |
| VIMAB Group AB |
| Cell Impact AB |
VIMAB Group and Cell Impact Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIMAB Group and Cell Impact
The main advantage of trading using opposite VIMAB Group and Cell Impact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIMAB Group position performs unexpectedly, Cell Impact 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 Cell Impact will offset losses from the drop in Cell Impact's long position.| VIMAB Group vs. Vitec Software Group | VIMAB Group vs. Invisio Communications AB | VIMAB Group vs. Qleanair Holding AB | VIMAB Group vs. Upsales Technology AB |
| Cell Impact vs. Impact Coatings publ | Cell Impact vs. Powercell Sweden | Cell Impact vs. Oncopeptides AB | Cell Impact vs. SaltX Technology Holding |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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