Correlation Between Spago Nanomedical and Saniona AB

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

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

Diversification Opportunities for Spago Nanomedical and Saniona AB

-0.31

Correlation Coefficient

Spago Nanomedical  Saniona AB

Very good diversification

The 3 months correlation between Spago and Saniona is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Spago Nanomedical AB and Saniona AB TO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saniona AB TO and Spago Nanomedical 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 Spago Nanomedical AB are associated (or correlated) with Saniona AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saniona AB TO has no effect on the direction of Spago Nanomedical i.e., Spago Nanomedical and Saniona AB go up and down completely randomly.

Pair Corralation between Spago Nanomedical and Saniona AB

Assuming the 90 days trading horizon Spago Nanomedical AB is expected to generate 0.67 times more return on investment than Saniona AB. However, Spago Nanomedical AB is 1.5 times less risky than Saniona AB. It trades about 0.1 of its potential returns per unit of risk. Saniona AB TO is currently generating about -0.23 per unit of risk. If you would invest  20.00  in Spago Nanomedical AB on October 25, 2024 and sell it today you would earn a total of  1.00  from holding Spago Nanomedical AB or generate 5.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	94.12%
Values	Daily Returns

Spago Nanomedical AB  vs.  Saniona AB TO

Spago Nanomedical

Risk-Adjusted Performance

1 of 100

Very Weak

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

Saniona AB TO

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Saniona AB TO 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.

Pair Trading with Spago Nanomedical and Saniona AB

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

The idea behind Spago Nanomedical AB and Saniona AB TO 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.