Correlation Between Scandion Oncology and ExpreS2ion Biotech

Can any of the company-specific risk be diversified away by investing in both Scandion Oncology and ExpreS2ion Biotech 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 Scandion Oncology and ExpreS2ion Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Scandion Oncology AS and ExpreS2ion Biotech Holding, you can compare the effects of market volatilities on Scandion Oncology and ExpreS2ion Biotech 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 Scandion Oncology with a short position of ExpreS2ion Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scandion Oncology and ExpreS2ion Biotech.

Diversification Opportunities for Scandion Oncology and ExpreS2ion Biotech

0.86

Correlation Coefficient

Scandion Oncology  ExpreS2ion Biotech

Very poor diversification

The 3 months correlation between Scandion and ExpreS2ion is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Scandion Oncology AS and ExpreS2ion Biotech Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ExpreS2ion Biotech and Scandion Oncology 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 Scandion Oncology AS are associated (or correlated) with ExpreS2ion Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ExpreS2ion Biotech has no effect on the direction of Scandion Oncology i.e., Scandion Oncology and ExpreS2ion Biotech go up and down completely randomly.

Pair Corralation between Scandion Oncology and ExpreS2ion Biotech

Assuming the 90 days trading horizon Scandion Oncology AS is expected to under-perform the ExpreS2ion Biotech. But the stock apears to be less risky and, when comparing its historical volatility, Scandion Oncology AS is 1.43 times less risky than ExpreS2ion Biotech. The stock trades about -0.35 of its potential returns per unit of risk. The ExpreS2ion Biotech Holding is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  2,080  in ExpreS2ion Biotech Holding on October 26, 2024 and sell it today you would earn a total of  320.00  from holding ExpreS2ion Biotech Holding or generate 15.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	94.44%
Values	Daily Returns

Scandion Oncology AS  vs.  ExpreS2ion Biotech Holding

Scandion Oncology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Scandion Oncology AS 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.

ExpreS2ion Biotech

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ExpreS2ion Biotech Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Scandion Oncology and ExpreS2ion Biotech

The main advantage of trading using opposite Scandion Oncology and ExpreS2ion Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scandion Oncology position performs unexpectedly, ExpreS2ion Biotech 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 ExpreS2ion Biotech will offset losses from the drop in ExpreS2ion Biotech's long position.

The idea behind Scandion Oncology AS and ExpreS2ion Biotech 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.