Correlation Between AcouSort and Cantargia
Can any of the company-specific risk be diversified away by investing in both AcouSort 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 AcouSort and Cantargia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AcouSort AB and Cantargia AB, you can compare the effects of market volatilities on AcouSort 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 AcouSort with a short position of Cantargia. Check out your portfolio center. Please also check ongoing floating volatility patterns of AcouSort and Cantargia.
Diversification Opportunities for AcouSort and Cantargia
Good diversification
The 3 months correlation between AcouSort and Cantargia is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding AcouSort AB and Cantargia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cantargia AB and AcouSort 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 AcouSort AB 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 AcouSort i.e., AcouSort and Cantargia go up and down completely randomly.
Pair Corralation between AcouSort and Cantargia
Assuming the 90 days trading horizon AcouSort AB is expected to under-perform the Cantargia. But the stock apears to be less risky and, when comparing its historical volatility, AcouSort AB is 10.43 times less risky than Cantargia. The stock trades about -0.08 of its potential returns per unit of risk. The Cantargia AB is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 157.00 in Cantargia AB on April 23, 2025 and sell it today you would earn a total of 156.00 from holding Cantargia AB or generate 99.36% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.36% |
Values | Daily Returns |
AcouSort AB vs. Cantargia AB
Performance |
Timeline |
AcouSort AB |
Cantargia AB |
AcouSort and Cantargia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AcouSort and Cantargia
The main advantage of trading using opposite AcouSort and Cantargia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AcouSort 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.AcouSort vs. Xbrane Biopharma AB | AcouSort vs. Hansa Biopharma AB | AcouSort vs. Cantargia AB | AcouSort vs. Vicore Pharma Holding |
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Check out your portfolio center.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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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