Correlation Between Immunovia Publ and Nexam Chemical
Can any of the company-specific risk be diversified away by investing in both Immunovia Publ and Nexam Chemical 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 Immunovia Publ and Nexam Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Immunovia publ AB and Nexam Chemical Holding, you can compare the effects of market volatilities on Immunovia Publ and Nexam Chemical 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 Immunovia Publ with a short position of Nexam Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immunovia Publ and Nexam Chemical.
Diversification Opportunities for Immunovia Publ and Nexam Chemical
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Immunovia and Nexam is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Immunovia publ AB and Nexam Chemical Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexam Chemical Holding and Immunovia Publ 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 Immunovia publ AB are associated (or correlated) with Nexam Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexam Chemical Holding has no effect on the direction of Immunovia Publ i.e., Immunovia Publ and Nexam Chemical go up and down completely randomly.
Pair Corralation between Immunovia Publ and Nexam Chemical
Assuming the 90 days trading horizon Immunovia publ AB is expected to generate 3.03 times more return on investment than Nexam Chemical. However, Immunovia Publ is 3.03 times more volatile than Nexam Chemical Holding. It trades about 0.05 of its potential returns per unit of risk. Nexam Chemical Holding is currently generating about -0.1 per unit of risk. If you would invest 79.00 in Immunovia publ AB on September 8, 2024 and sell it today you would earn a total of 2.00 from holding Immunovia publ AB or generate 2.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Immunovia publ AB vs. Nexam Chemical Holding
Performance |
Timeline |
Immunovia publ AB |
Nexam Chemical Holding |
Immunovia Publ and Nexam Chemical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Immunovia Publ and Nexam Chemical
The main advantage of trading using opposite Immunovia Publ and Nexam Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immunovia Publ position performs unexpectedly, Nexam Chemical 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 Nexam Chemical will offset losses from the drop in Nexam Chemical's long position.Immunovia Publ vs. Oncopeptides AB | Immunovia Publ vs. Hansa Biopharma AB | Immunovia Publ vs. Cantargia AB | Immunovia Publ vs. Camurus AB |
Nexam Chemical vs. Polygiene AB | Nexam Chemical vs. Svenska Aerogel Holding | Nexam Chemical vs. Organoclick AB | Nexam Chemical vs. Kancera AB |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
Commodity Directory Find actively traded commodities issued by global exchanges | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |