Correlation Between Orexo AB and Oncopeptides
Can any of the company-specific risk be diversified away by investing in both Orexo AB 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 Orexo AB and Oncopeptides into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orexo AB and Oncopeptides AB, you can compare the effects of market volatilities on Orexo AB 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 Orexo AB with a short position of Oncopeptides. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orexo AB and Oncopeptides.
Diversification Opportunities for Orexo AB and Oncopeptides
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Orexo and Oncopeptides is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Orexo AB and Oncopeptides AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oncopeptides AB 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 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 Orexo AB i.e., Orexo AB and Oncopeptides go up and down completely randomly.
Pair Corralation between Orexo AB and Oncopeptides
Assuming the 90 days trading horizon Orexo AB is expected to generate 1.09 times more return on investment than Oncopeptides. However, Orexo AB is 1.09 times more volatile than Oncopeptides AB. It trades about 0.04 of its potential returns per unit of risk. Oncopeptides AB is currently generating about -0.09 per unit of risk. If you would invest 1,646 in Orexo AB on September 24, 2024 and sell it today you would earn a total of 280.00 from holding Orexo AB or generate 17.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Orexo AB vs. Oncopeptides AB
Performance |
Timeline |
Orexo AB |
Oncopeptides AB |
Orexo AB and Oncopeptides Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Orexo AB and Oncopeptides
The main advantage of trading using opposite Orexo AB and Oncopeptides positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orexo AB 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.Orexo AB vs. BioInvent International AB | Orexo AB vs. Alligator Bioscience AB | Orexo AB vs. Swedish Orphan Biovitrum | Orexo AB vs. Anoto Group 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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