Correlation Between Combigene and Cantargia
Can any of the company-specific risk be diversified away by investing in both Combigene and Cantargia 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 Combigene and Cantargia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Combigene AB and Cantargia AB, you can compare the effects of market volatilities on Combigene 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 Combigene with a short position of Cantargia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Combigene and Cantargia.
Diversification Opportunities for Combigene and Cantargia
Excellent diversification
The 3 months correlation between Combigene and Cantargia is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Combigene AB and Cantargia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cantargia AB and Combigene 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 Combigene 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 Combigene i.e., Combigene and Cantargia go up and down completely randomly.
Pair Corralation between Combigene and Cantargia
Assuming the 90 days trading horizon Combigene AB is expected to under-perform the Cantargia. In addition to that, Combigene is 1.04 times more volatile than Cantargia AB. It trades about -0.11 of its total potential returns per unit of risk. Cantargia AB is currently generating about 0.18 per unit of volatility. If you would invest 407.00 in Cantargia AB on March 29, 2024 and sell it today you would earn a total of 60.00 from holding Cantargia AB or generate 14.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Combigene AB vs. Cantargia AB
Performance |
Timeline |
Combigene AB |
Cantargia AB |
Combigene and Cantargia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Combigene and Cantargia
The main advantage of trading using opposite Combigene and Cantargia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Combigene 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.Combigene vs. Vitrolife AB | Combigene vs. BioArctic AB | Combigene vs. Camurus AB | Combigene vs. BioInvent International AB |
Cantargia vs. Vitrolife AB | Cantargia vs. BioArctic AB | Cantargia vs. Camurus AB | Cantargia vs. BioInvent International 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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