Correlation Between Saniona AB and Cyxone AB

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

By analyzing existing cross correlation between Saniona AB and Cyxone AB, you can compare the effects of market volatilities on Saniona AB and Cyxone AB 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 Cyxone AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saniona AB and Cyxone AB.

Diversification Opportunities for Saniona AB and Cyxone AB

0.67

Correlation Coefficient

Saniona AB  Cyxone AB

Poor diversification

The 3 months correlation between Saniona and Cyxone is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Saniona AB and Cyxone AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cyxone AB 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 are associated (or correlated) with Cyxone AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cyxone AB has no effect on the direction of Saniona AB i.e., Saniona AB and Cyxone AB go up and down completely randomly.

Pair Corralation between Saniona AB and Cyxone AB

Assuming the 90 days trading horizon Saniona AB is expected to generate 1.01 times more return on investment than Cyxone AB. However, Saniona AB is 1.01 times more volatile than Cyxone AB. It trades about 0.11 of its potential returns per unit of risk. Cyxone AB is currently generating about 0.03 per unit of risk. If you would invest  435.00  in Saniona AB on August 31, 2024 and sell it today you would earn a total of  265.00  from holding Saniona AB or generate 60.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.46%
Values	Daily Returns

Saniona AB  vs.  Cyxone AB

Saniona AB

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Saniona AB are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Saniona AB sustained solid returns over the last few months and may actually be approaching a breakup point.

Cyxone AB

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cyxone AB are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Cyxone AB unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Saniona AB and Cyxone AB

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

The idea behind Saniona AB and Cyxone AB 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..