Correlation Between CellaVision and Scibase AB

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

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

Diversification Opportunities for CellaVision and Scibase AB

0.8

Correlation Coefficient

CellaVision  Scibase AB

Very poor diversification

The 3 months correlation between CellaVision and Scibase is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding CellaVision AB and Scibase AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scibase AB and CellaVision 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 CellaVision AB are associated (or correlated) with Scibase AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scibase AB has no effect on the direction of CellaVision i.e., CellaVision and Scibase AB go up and down completely randomly.

Pair Corralation between CellaVision and Scibase AB

Assuming the 90 days trading horizon CellaVision is expected to generate 455.82 times less return on investment than Scibase AB. But when comparing it to its historical volatility, CellaVision AB is 2.64 times less risky than Scibase AB. It trades about 0.0 of its potential returns per unit of risk. Scibase AB is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest  32.00  in Scibase AB on October 5, 2024 and sell it today you would earn a total of  9.00  from holding Scibase AB or generate 28.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	94.44%
Values	Daily Returns

CellaVision AB  vs.  Scibase AB

CellaVision AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CellaVision AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Scibase AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Scibase AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with CellaVision and Scibase AB

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

The idea behind CellaVision AB and Scibase AB 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.