Correlation Between Zaptec AS and Ascelia Pharma
Can any of the company-specific risk be diversified away by investing in both Zaptec AS and Ascelia Pharma 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 Zaptec AS and Ascelia Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zaptec AS and Ascelia Pharma AB, you can compare the effects of market volatilities on Zaptec AS and Ascelia Pharma 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 Zaptec AS with a short position of Ascelia Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zaptec AS and Ascelia Pharma.
Diversification Opportunities for Zaptec AS and Ascelia Pharma
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Zaptec and Ascelia is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Zaptec AS and Ascelia Pharma AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascelia Pharma AB and Zaptec AS 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 Zaptec AS are associated (or correlated) with Ascelia Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascelia Pharma AB has no effect on the direction of Zaptec AS i.e., Zaptec AS and Ascelia Pharma go up and down completely randomly.
Pair Corralation between Zaptec AS and Ascelia Pharma
Assuming the 90 days trading horizon Zaptec AS is expected to under-perform the Ascelia Pharma. But the stock apears to be less risky and, when comparing its historical volatility, Zaptec AS is 1.89 times less risky than Ascelia Pharma. The stock trades about -0.03 of its potential returns per unit of risk. The Ascelia Pharma AB is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,448 in Ascelia Pharma AB on September 13, 2024 and sell it today you would lose (1,115) from holding Ascelia Pharma AB or give up 77.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Zaptec AS vs. Ascelia Pharma AB
Performance |
| Timeline |
| Zaptec AS |
| Ascelia Pharma AB |
Zaptec AS and Ascelia Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zaptec AS and Ascelia Pharma
The main advantage of trading using opposite Zaptec AS and Ascelia Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zaptec AS position performs unexpectedly, Ascelia Pharma 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 Ascelia Pharma will offset losses from the drop in Ascelia Pharma's long position.| Zaptec AS vs. Kongsberg Automotive Holding | Zaptec AS vs. Bavarian Nordic | Zaptec AS vs. Everfuel AS | Zaptec AS vs. Elkem ASA |
| Ascelia Pharma vs. Bavarian Nordic | Ascelia Pharma vs. BioPorto | Ascelia Pharma vs. Zaptec AS | Ascelia Pharma vs. cBrain AS |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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