Correlation Between Oxurion NV and Sequana Medical

Can any of the company-specific risk be diversified away by investing in both Oxurion NV and Sequana Medical 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 Oxurion NV and Sequana Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Oxurion NV and Sequana Medical NV, you can compare the effects of market volatilities on Oxurion NV and Sequana Medical 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 Oxurion NV with a short position of Sequana Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxurion NV and Sequana Medical.

Diversification Opportunities for Oxurion NV and Sequana Medical

0.3

Correlation Coefficient

Oxurion NV  Sequana Medical

Weak diversification

The 3 months correlation between Oxurion and Sequana is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Oxurion NV and Sequana Medical NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sequana Medical NV and Oxurion NV 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 Oxurion NV are associated (or correlated) with Sequana Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sequana Medical NV has no effect on the direction of Oxurion NV i.e., Oxurion NV and Sequana Medical go up and down completely randomly.

Pair Corralation between Oxurion NV and Sequana Medical

Assuming the 90 days trading horizon Oxurion NV is expected to under-perform the Sequana Medical. But the stock apears to be less risky and, when comparing its historical volatility, Oxurion NV is 1.79 times less risky than Sequana Medical. The stock trades about -0.25 of its potential returns per unit of risk. The Sequana Medical NV is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  95.00  in Sequana Medical NV on September 12, 2024 and sell it today you would lose (22.00) from holding Sequana Medical NV or give up 23.16% of portfolio value over 90 days.

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

Oxurion NV  vs.  Sequana Medical NV

Oxurion NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oxurion NV has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Sequana Medical NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sequana Medical NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Sequana Medical is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Oxurion NV and Sequana Medical

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

The idea behind Oxurion NV and Sequana Medical NV 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.