Correlation Between Karolinska Development and Oncopeptides
Can any of the company-specific risk be diversified away by investing in both Karolinska Development and Oncopeptides 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 Karolinska Development and Oncopeptides into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Karolinska Development AB and Oncopeptides AB, you can compare the effects of market volatilities on Karolinska Development and Oncopeptides 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 Karolinska Development with a short position of Oncopeptides. Check out your portfolio center. Please also check ongoing floating volatility patterns of Karolinska Development and Oncopeptides.
Diversification Opportunities for Karolinska Development and Oncopeptides
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Karolinska and Oncopeptides is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Karolinska Development AB and Oncopeptides AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oncopeptides AB and Karolinska Development 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 Karolinska Development AB are associated (or correlated) with Oncopeptides. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oncopeptides AB has no effect on the direction of Karolinska Development i.e., Karolinska Development and Oncopeptides go up and down completely randomly.
Pair Corralation between Karolinska Development and Oncopeptides
Assuming the 90 days trading horizon Karolinska Development AB is expected to generate 0.81 times more return on investment than Oncopeptides. However, Karolinska Development AB is 1.23 times less risky than Oncopeptides. It trades about -0.08 of its potential returns per unit of risk. Oncopeptides AB is currently generating about -0.14 per unit of risk. If you would invest 123.00 in Karolinska Development AB on September 12, 2024 and sell it today you would lose (21.00) from holding Karolinska Development AB or give up 17.07% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Karolinska Development AB vs. Oncopeptides AB
Performance |
Timeline |
Karolinska Development |
Oncopeptides AB |
Karolinska Development and Oncopeptides Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Karolinska Development and Oncopeptides
The main advantage of trading using opposite Karolinska Development and Oncopeptides positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Karolinska Development position performs unexpectedly, Oncopeptides 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 Oncopeptides will offset losses from the drop in Oncopeptides' long position.Karolinska Development vs. Oncopeptides AB | Karolinska Development vs. Cantargia AB | Karolinska Development vs. BioInvent International AB | Karolinska Development vs. Moberg Pharma AB |
Oncopeptides vs. Hansa Biopharma AB | Oncopeptides vs. BioArctic AB | Oncopeptides vs. Sinch AB | Oncopeptides vs. Cantargia 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |