Correlation Between Orexo AB and Klaria Pharma

Can any of the company-specific risk be diversified away by investing in both Orexo AB and Klaria Pharma 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 Orexo AB and Klaria Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Orexo AB and Klaria Pharma Holding, you can compare the effects of market volatilities on Orexo AB and Klaria Pharma 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 Orexo AB with a short position of Klaria Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orexo AB and Klaria Pharma.

Diversification Opportunities for Orexo AB and Klaria Pharma

-0.53

Correlation Coefficient

Orexo AB  Klaria Pharma

Excellent diversification

The 3 months correlation between Orexo and Klaria is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Orexo AB and Klaria Pharma Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klaria Pharma Holding and Orexo AB 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 Orexo AB are associated (or correlated) with Klaria Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klaria Pharma Holding has no effect on the direction of Orexo AB i.e., Orexo AB and Klaria Pharma go up and down completely randomly.

Pair Corralation between Orexo AB and Klaria Pharma

Assuming the 90 days trading horizon Orexo AB is expected to generate 1.29 times less return on investment than Klaria Pharma. But when comparing it to its historical volatility, Orexo AB is 1.68 times less risky than Klaria Pharma. It trades about 0.02 of its potential returns per unit of risk. Klaria Pharma Holding is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  100.00  in Klaria Pharma Holding on October 11, 2024 and sell it today you would lose (70.00) from holding Klaria Pharma Holding or give up 70.0% of portfolio value over 90 days.

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

Orexo AB  vs.  Klaria Pharma Holding

Orexo AB

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Orexo AB are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Orexo AB unveiled solid returns over the last few months and may actually be approaching a breakup point.

Klaria Pharma Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Klaria Pharma Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Orexo AB and Klaria Pharma

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

The idea behind Orexo AB and Klaria Pharma Holding 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.