Correlation Between Saniona AB and Cyber Security

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

By analyzing existing cross correlation between Saniona AB TO and Cyber Security 1, you can compare the effects of market volatilities on Saniona AB and Cyber Security 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 Saniona AB with a short position of Cyber Security. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saniona AB and Cyber Security.

Diversification Opportunities for Saniona AB and Cyber Security

0.0

Correlation Coefficient

Saniona AB  Cyber Security

Pay attention - limited upside

The 3 months correlation between Saniona and Cyber is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Saniona AB TO and Cyber Security 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cyber Security 1 and Saniona 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 Saniona AB TO are associated (or correlated) with Cyber Security. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cyber Security 1 has no effect on the direction of Saniona AB i.e., Saniona AB and Cyber Security go up and down completely randomly.

Pair Corralation between Saniona AB and Cyber Security

If you would invest  1.00  in Cyber Security 1 on October 3, 2024 and sell it today you would lose (0.06) from holding Cyber Security 1 or give up 6.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Saniona AB TO  vs.  Cyber Security 1

Saniona AB TO

Risk-Adjusted Performance

0 of 100

OK

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

Cyber Security 1

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cyber Security 1 has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak 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 Saniona AB and Cyber Security

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

The idea behind Saniona AB TO and Cyber Security 1 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.