Correlation Between JonDeTech Sensors and Immunovia Publ
Can any of the company-specific risk be diversified away by investing in both JonDeTech Sensors and Immunovia Publ 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 JonDeTech Sensors and Immunovia Publ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JonDeTech Sensors and Immunovia publ AB, you can compare the effects of market volatilities on JonDeTech Sensors and Immunovia Publ 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 JonDeTech Sensors with a short position of Immunovia Publ. Check out your portfolio center. Please also check ongoing floating volatility patterns of JonDeTech Sensors and Immunovia Publ.
Diversification Opportunities for JonDeTech Sensors and Immunovia Publ
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JonDeTech and Immunovia is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding JonDeTech Sensors and Immunovia publ AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immunovia publ AB and JonDeTech Sensors 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 JonDeTech Sensors are associated (or correlated) with Immunovia Publ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immunovia publ AB has no effect on the direction of JonDeTech Sensors i.e., JonDeTech Sensors and Immunovia Publ go up and down completely randomly.
Pair Corralation between JonDeTech Sensors and Immunovia Publ
Assuming the 90 days trading horizon JonDeTech Sensors is expected to under-perform the Immunovia Publ. But the stock apears to be less risky and, when comparing its historical volatility, JonDeTech Sensors is 1.57 times less risky than Immunovia Publ. The stock trades about -0.05 of its potential returns per unit of risk. The Immunovia publ AB is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 83.00 in Immunovia publ AB on September 5, 2024 and sell it today you would lose (1.00) from holding Immunovia publ AB or give up 1.2% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
JonDeTech Sensors vs. Immunovia publ AB
Performance |
Timeline |
JonDeTech Sensors |
Immunovia publ AB |
JonDeTech Sensors and Immunovia Publ Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JonDeTech Sensors and Immunovia Publ
The main advantage of trading using opposite JonDeTech Sensors and Immunovia Publ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JonDeTech Sensors position performs unexpectedly, Immunovia Publ 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 Immunovia Publ will offset losses from the drop in Immunovia Publ's long position.JonDeTech Sensors vs. Ranplan Group | JonDeTech Sensors vs. Divio Technologies AB | JonDeTech Sensors vs. XMReality AB | JonDeTech Sensors vs. KABE Group AB |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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