Correlation Between SCANDION ONC and CTP NV

Can any of the company-specific risk be diversified away by investing in both SCANDION ONC and CTP NV 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 SCANDION ONC and CTP NV into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SCANDION ONC DK 0735 and CTP NV EO, you can compare the effects of market volatilities on SCANDION ONC and CTP NV 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 SCANDION ONC with a short position of CTP NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCANDION ONC and CTP NV.

Diversification Opportunities for SCANDION ONC and CTP NV

0.48

Correlation Coefficient

SCANDION ONC  CTP NV

Very weak diversification

The 3 months correlation between SCANDION and CTP is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding SCANDION ONC DK 0735 and CTP NV EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTP NV EO and SCANDION ONC 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 SCANDION ONC DK 0735 are associated (or correlated) with CTP NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTP NV EO has no effect on the direction of SCANDION ONC i.e., SCANDION ONC and CTP NV go up and down completely randomly.

Pair Corralation between SCANDION ONC and CTP NV

Assuming the 90 days horizon SCANDION ONC DK 0735 is expected to under-perform the CTP NV. In addition to that, SCANDION ONC is 2.66 times more volatile than CTP NV EO. It trades about -0.24 of its total potential returns per unit of risk. CTP NV EO is currently generating about 0.2 per unit of volatility. If you would invest  1,482  in CTP NV EO on October 26, 2024 and sell it today you would earn a total of  90.00  from holding CTP NV EO or generate 6.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	94.74%
Values	Daily Returns

SCANDION ONC DK 0735  vs.  CTP NV EO

SCANDION ONC DK

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SCANDION ONC DK 0735 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

CTP NV EO

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CTP NV EO has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, CTP NV is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with SCANDION ONC and CTP NV

The main advantage of trading using opposite SCANDION ONC and CTP NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCANDION ONC position performs unexpectedly, CTP NV 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 CTP NV will offset losses from the drop in CTP NV's long position.

The idea behind SCANDION ONC DK 0735 and CTP NV EO pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..