Correlation Between Oncopeptides and Lipigon Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Oncopeptides and Lipigon Pharmaceuticals 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 Oncopeptides and Lipigon Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oncopeptides AB and Lipigon Pharmaceuticals AB, you can compare the effects of market volatilities on Oncopeptides and Lipigon Pharmaceuticals 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 Oncopeptides with a short position of Lipigon Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oncopeptides and Lipigon Pharmaceuticals.
Diversification Opportunities for Oncopeptides and Lipigon Pharmaceuticals
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oncopeptides and Lipigon is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Oncopeptides AB and Lipigon Pharmaceuticals AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipigon Pharmaceuticals and Oncopeptides 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 Oncopeptides AB are associated (or correlated) with Lipigon Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lipigon Pharmaceuticals has no effect on the direction of Oncopeptides i.e., Oncopeptides and Lipigon Pharmaceuticals go up and down completely randomly.
Pair Corralation between Oncopeptides and Lipigon Pharmaceuticals
Assuming the 90 days trading horizon Oncopeptides AB is expected to generate 0.49 times more return on investment than Lipigon Pharmaceuticals. However, Oncopeptides AB is 2.04 times less risky than Lipigon Pharmaceuticals. It trades about -0.01 of its potential returns per unit of risk. Lipigon Pharmaceuticals AB is currently generating about -0.12 per unit of risk. If you would invest 150.00 in Oncopeptides AB on September 24, 2024 and sell it today you would lose (2.00) from holding Oncopeptides AB or give up 1.33% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
Oncopeptides AB vs. Lipigon Pharmaceuticals AB
Performance |
Timeline |
Oncopeptides AB |
Lipigon Pharmaceuticals |
Oncopeptides and Lipigon Pharmaceuticals Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Oncopeptides and Lipigon Pharmaceuticals
The main advantage of trading using opposite Oncopeptides and Lipigon Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oncopeptides position performs unexpectedly, Lipigon Pharmaceuticals 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 Lipigon Pharmaceuticals will offset losses from the drop in Lipigon Pharmaceuticals' long position.Oncopeptides vs. Hansa Biopharma AB | Oncopeptides vs. BioArctic AB | Oncopeptides vs. Sinch AB | Oncopeptides vs. Cantargia 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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