Correlation Between Vicore Pharma and Cantargia

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

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

Diversification Opportunities for Vicore Pharma and Cantargia

0.31

Correlation Coefficient

Vicore Pharma  Cantargia

Weak diversification

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

Pair Corralation between Vicore Pharma and Cantargia

Assuming the 90 days trading horizon Vicore Pharma Holding is expected to generate 1.89 times more return on investment than Cantargia. However, Vicore Pharma is 1.89 times more volatile than Cantargia AB. It trades about 0.5 of its potential returns per unit of risk. Cantargia AB is currently generating about -0.19 per unit of risk. If you would invest  765.00  in Vicore Pharma Holding on October 10, 2024 and sell it today you would earn a total of  279.00  from holding Vicore Pharma Holding or generate 36.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	94.12%
Values	Daily Returns

Vicore Pharma Holding  vs.  Cantargia AB

Vicore Pharma Holding

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vicore Pharma Holding are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Vicore Pharma unveiled solid returns over the last few months and may actually be approaching a breakup point.

Cantargia AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cantargia AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain 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 Vicore Pharma and Cantargia

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

The idea behind Vicore Pharma Holding and Cantargia 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.