Correlation Between Vicore Pharma and Saniona AB

Can any of the company-specific risk be diversified away by investing in both Vicore Pharma 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 Vicore Pharma and Saniona AB 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 Saniona AB, you can compare the effects of market volatilities on Vicore Pharma 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 Vicore Pharma with a short position of Saniona AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vicore Pharma and Saniona AB.

Diversification Opportunities for Vicore Pharma and Saniona AB

0.1

Correlation Coefficient

Vicore Pharma  Saniona AB

Average diversification

The 3 months correlation between Vicore and Saniona is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Vicore Pharma Holding and Saniona AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saniona 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 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 has no effect on the direction of Vicore Pharma i.e., Vicore Pharma and Saniona AB go up and down completely randomly.

Pair Corralation between Vicore Pharma and Saniona AB

Assuming the 90 days trading horizon Vicore Pharma Holding is expected to under-perform the Saniona AB. But the stock apears to be less risky and, when comparing its historical volatility, Vicore Pharma Holding is 1.93 times less risky than Saniona AB. The stock trades about -0.01 of its potential returns per unit of risk. The Saniona AB is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  316.00  in Saniona AB on October 12, 2024 and sell it today you would earn a total of  385.00  from holding Saniona AB or generate 121.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Vicore Pharma Holding  vs.  Saniona AB

Vicore Pharma Holding

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Vicore Pharma Holding are ranked lower than 8 (%) 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.

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.

Pair Trading with Vicore Pharma and Saniona AB

The main advantage of trading using opposite Vicore Pharma and Saniona AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vicore Pharma 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 Vicore Pharma Holding and Saniona 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.