Correlation Between Fluicell and Ascelia Pharma

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

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

Diversification Opportunities for Fluicell and Ascelia Pharma

-0.75

Correlation Coefficient

Fluicell  Ascelia Pharma

Pay attention - limited upside

The 3 months correlation between Fluicell and Ascelia is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Fluicell AB and Ascelia Pharma AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascelia Pharma AB and Fluicell 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 Fluicell AB are associated (or correlated) with Ascelia Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascelia Pharma AB has no effect on the direction of Fluicell i.e., Fluicell and Ascelia Pharma go up and down completely randomly.

Pair Corralation between Fluicell and Ascelia Pharma

If you would invest  0.00  in Fluicell AB on October 26, 2024 and sell it today you would earn a total of  0.00  from holding Fluicell AB or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	0.2%
Values	Daily Returns

Fluicell AB  vs.  Ascelia Pharma AB

Fluicell AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fluicell AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Fluicell is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Ascelia Pharma AB

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ascelia Pharma AB are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak technical and fundamental indicators, Ascelia Pharma unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Fluicell and Ascelia Pharma

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

The idea behind Fluicell AB and Ascelia Pharma 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.