Correlation Between Ascelia Pharma and Veg Of

Can any of the company-specific risk be diversified away by investing in both Ascelia Pharma and Veg Of 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 Ascelia Pharma and Veg Of into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ascelia Pharma AB and Veg of Lund, you can compare the effects of market volatilities on Ascelia Pharma and Veg Of 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 Ascelia Pharma with a short position of Veg Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascelia Pharma and Veg Of.

Diversification Opportunities for Ascelia Pharma and Veg Of

-0.12

Correlation Coefficient

Ascelia Pharma  Veg Of

Good diversification

The 3 months correlation between Ascelia and Veg is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Ascelia Pharma AB and Veg of Lund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veg of Lund and Ascelia Pharma 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 Ascelia Pharma AB are associated (or correlated) with Veg Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Veg of Lund has no effect on the direction of Ascelia Pharma i.e., Ascelia Pharma and Veg Of go up and down completely randomly.

Pair Corralation between Ascelia Pharma and Veg Of

Assuming the 90 days trading horizon Ascelia Pharma is expected to generate 35.54 times less return on investment than Veg Of. But when comparing it to its historical volatility, Ascelia Pharma AB is 2.32 times less risky than Veg Of. It trades about 0.02 of its potential returns per unit of risk. Veg of Lund is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest  24.00  in Veg of Lund on December 29, 2024 and sell it today you would earn a total of  47.00  from holding Veg of Lund or generate 195.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Ascelia Pharma AB  vs.  Veg of Lund

Ascelia Pharma AB

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ascelia Pharma AB are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, Ascelia Pharma is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Veg of Lund

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Veg of Lund are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Veg Of unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ascelia Pharma and Veg Of

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

The idea behind Ascelia Pharma AB and Veg of Lund 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.

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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.