Correlation Between Volvo Car and Cantargia
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By analyzing existing cross correlation between Volvo Car AB and Cantargia AB, you can compare the effects of market volatilities on Volvo Car and Cantargia 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 Volvo Car with a short position of Cantargia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Volvo Car and Cantargia.
Diversification Opportunities for Volvo Car and Cantargia
Very good diversification
The 3 months correlation between Volvo and Cantargia is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Volvo Car AB and Cantargia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cantargia AB and Volvo Car 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 Volvo Car AB are associated (or correlated) with Cantargia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cantargia AB has no effect on the direction of Volvo Car i.e., Volvo Car and Cantargia go up and down completely randomly.
Pair Corralation between Volvo Car and Cantargia
Assuming the 90 days trading horizon Volvo Car AB is expected to generate 0.63 times more return on investment than Cantargia. However, Volvo Car AB is 1.58 times less risky than Cantargia. It trades about 0.0 of its potential returns per unit of risk. Cantargia AB is currently generating about -0.13 per unit of risk. If you would invest 2,808 in Volvo Car AB on November 2, 2024 and sell it today you would lose (173.00) from holding Volvo Car AB or give up 6.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.03% |
| Values | Daily Returns |
Volvo Car AB vs. Cantargia AB
Performance |
| Timeline |
| Volvo Car AB |
| Cantargia AB |
Volvo Car and Cantargia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Volvo Car and Cantargia
The main advantage of trading using opposite Volvo Car and Cantargia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Volvo Car position performs unexpectedly, Cantargia 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 Cantargia will offset losses from the drop in Cantargia's long position.| Volvo Car vs. Samhllsbyggnadsbolaget i Norden | Volvo Car vs. Sinch AB | Volvo Car vs. Investor AB ser | Volvo Car vs. SSAB AB |
| Cantargia vs. Hansa Biopharma AB | Cantargia vs. Oncopeptides AB | Cantargia vs. BioArctic AB | Cantargia vs. Alligator Bioscience 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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