Correlation Between Immunovia Publ and Sedana Medical

Can any of the company-specific risk be diversified away by investing in both Immunovia Publ and Sedana Medical 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 Sedana Medical 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 Sedana Medical AB, you can compare the effects of market volatilities on Immunovia Publ and Sedana Medical 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 Sedana Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immunovia Publ and Sedana Medical.

Diversification Opportunities for Immunovia Publ and Sedana Medical

-0.73

Correlation Coefficient

Immunovia Publ  Sedana Medical

Pay attention - limited upside

The 3 months correlation between Immunovia and Sedana is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Immunovia publ AB and Sedana Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sedana Medical AB 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 Sedana Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sedana Medical AB has no effect on the direction of Immunovia Publ i.e., Immunovia Publ and Sedana Medical go up and down completely randomly.

Pair Corralation between Immunovia Publ and Sedana Medical

Assuming the 90 days trading horizon Immunovia publ AB is expected to under-perform the Sedana Medical. But the stock apears to be less risky and, when comparing its historical volatility, Immunovia publ AB is 1.46 times less risky than Sedana Medical. The stock trades about -0.36 of its potential returns per unit of risk. The Sedana Medical AB is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  1,626  in Sedana Medical AB on December 11, 2024 and sell it today you would earn a total of  48.00  from holding Sedana Medical AB or generate 2.95% return on investment over 90 days.

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

Immunovia publ AB  vs.  Sedana Medical AB

Immunovia publ AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Immunovia publ AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's primary indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Sedana Medical AB

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sedana Medical AB are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain fundamental indicators, Sedana Medical may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Immunovia Publ and Sedana Medical

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

The idea behind Immunovia publ AB and Sedana Medical 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.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.