Correlation Between CPENPO CPEN and Vifor Pharma

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

By analyzing existing cross correlation between CPENPO CPEN P and Vifor Pharma AG, you can compare the effects of market volatilities on CPENPO CPEN and Vifor 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 CPENPO CPEN with a short position of Vifor Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of CPENPO CPEN and Vifor Pharma.

Diversification Opportunities for CPENPO CPEN and Vifor Pharma

0.0

Correlation Coefficient

CPENPO CPEN  Vifor Pharma

Pay attention - limited upside

The 3 months correlation between CPENPO and Vifor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CPENPO CPEN P and Vifor Pharma AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vifor Pharma AG and CPENPO CPEN 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 CPENPO CPEN P are associated (or correlated) with Vifor Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vifor Pharma AG has no effect on the direction of CPENPO CPEN i.e., CPENPO CPEN and Vifor Pharma go up and down completely randomly.

Pair Corralation between CPENPO CPEN and Vifor Pharma

If you would invest (100.00) in Vifor Pharma AG on October 8, 2024 and sell it today you would earn a total of  100.00  from holding Vifor Pharma AG or generate -100.0% return on investment over 90 days.

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

CPENPO CPEN P  vs.  Vifor Pharma AG

CPENPO CPEN P

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CPENPO CPEN P has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, CPENPO CPEN is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Vifor Pharma AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vifor Pharma AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Vifor Pharma is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with CPENPO CPEN and Vifor Pharma

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

The idea behind CPENPO CPEN P and Vifor Pharma AG 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.