Correlation Between Swedencare Publ and Oncopeptides

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

By analyzing existing cross correlation between Swedencare publ AB and Oncopeptides AB, you can compare the effects of market volatilities on Swedencare Publ 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 Swedencare Publ with a short position of Oncopeptides. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swedencare Publ and Oncopeptides.

Diversification Opportunities for Swedencare Publ and Oncopeptides

-0.09

Correlation Coefficient

Swedencare Publ  Oncopeptides

Good diversification

The 3 months correlation between Swedencare and Oncopeptides is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Swedencare publ AB and Oncopeptides AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oncopeptides AB and Swedencare Publ 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 Swedencare publ 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 Swedencare Publ i.e., Swedencare Publ and Oncopeptides go up and down completely randomly.

Pair Corralation between Swedencare Publ and Oncopeptides

Assuming the 90 days trading horizon Swedencare publ AB is expected to under-perform the Oncopeptides. But the stock apears to be less risky and, when comparing its historical volatility, Swedencare publ AB is 1.94 times less risky than Oncopeptides. The stock trades about -0.13 of its potential returns per unit of risk. The Oncopeptides AB is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  153.00  in Oncopeptides AB on December 27, 2024 and sell it today you would lose (3.00) from holding Oncopeptides AB or give up 1.96% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Swedencare publ AB  vs.  Oncopeptides AB

Swedencare publ AB

Risk-Adjusted Performance

Very Weak

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

Oncopeptides AB

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Oncopeptides AB are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Oncopeptides is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Swedencare Publ and Oncopeptides

The main advantage of trading using opposite Swedencare Publ and Oncopeptides positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swedencare Publ 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.

The idea behind Swedencare publ AB and Oncopeptides 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.