Correlation Between SCANDION ONC and Continental Aktiengesellscha

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

By analyzing existing cross correlation between SCANDION ONC DK 0735 and Continental Aktiengesellschaft, you can compare the effects of market volatilities on SCANDION ONC and Continental Aktiengesellscha 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 ONC with a short position of Continental Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCANDION ONC and Continental Aktiengesellscha.

Diversification Opportunities for SCANDION ONC and Continental Aktiengesellscha

0.0

Correlation Coefficient

SCANDION ONC  Continental Aktiengesellscha

Pay attention - limited upside

The 3 months correlation between SCANDION and Continental is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SCANDION ONC DK 0735 and Continental Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Continental Aktiengesellscha and SCANDION ONC 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 ONC DK 0735 are associated (or correlated) with Continental Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Continental Aktiengesellscha has no effect on the direction of SCANDION ONC i.e., SCANDION ONC and Continental Aktiengesellscha go up and down completely randomly.

Pair Corralation between SCANDION ONC and Continental Aktiengesellscha

If you would invest  6,366  in Continental Aktiengesellschaft on April 20, 2025 and sell it today you would earn a total of  1,156  from holding Continental Aktiengesellschaft or generate 18.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

SCANDION ONC DK 0735  vs.  Continental Aktiengesellschaft

SCANDION ONC DK

Risk-Adjusted Performance

Very Weak

Over the last 90 days SCANDION ONC DK 0735 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, SCANDION ONC is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Continental Aktiengesellscha

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Continental Aktiengesellschaft are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Continental Aktiengesellscha unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SCANDION ONC and Continental Aktiengesellscha

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

The idea behind SCANDION ONC DK 0735 and Continental Aktiengesellschaft 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.