Correlation Between Vitrolife and CellaVision
Can any of the company-specific risk be diversified away by investing in both Vitrolife and CellaVision 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 Vitrolife and CellaVision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vitrolife AB and CellaVision AB, you can compare the effects of market volatilities on Vitrolife and CellaVision 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 Vitrolife with a short position of CellaVision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vitrolife and CellaVision.
Diversification Opportunities for Vitrolife and CellaVision
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vitrolife and CellaVision is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Vitrolife AB and CellaVision AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CellaVision AB and Vitrolife 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 Vitrolife AB are associated (or correlated) with CellaVision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CellaVision AB has no effect on the direction of Vitrolife i.e., Vitrolife and CellaVision go up and down completely randomly.
Pair Corralation between Vitrolife and CellaVision
Assuming the 90 days trading horizon Vitrolife AB is expected to under-perform the CellaVision. But the stock apears to be less risky and, when comparing its historical volatility, Vitrolife AB is 1.09 times less risky than CellaVision. The stock trades about -0.09 of its potential returns per unit of risk. The CellaVision AB is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 22,100 in CellaVision AB on October 23, 2024 and sell it today you would earn a total of 650.00 from holding CellaVision AB or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vitrolife AB vs. CellaVision AB
Performance |
| Timeline |
| Vitrolife AB |
| CellaVision AB |
Vitrolife and CellaVision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vitrolife and CellaVision
The main advantage of trading using opposite Vitrolife and CellaVision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vitrolife position performs unexpectedly, CellaVision 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 CellaVision will offset losses from the drop in CellaVision's long position.| Vitrolife vs. Indutrade AB | Vitrolife vs. Avanza Bank Holding | Vitrolife vs. TF Bank AB | Vitrolife vs. Swedbank AB |
| CellaVision vs. Vitrolife AB | CellaVision vs. Biotage AB | CellaVision vs. Sectra AB | CellaVision vs. BioGaia 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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