Correlation Between Cantargia and AcouSort

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

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

Diversification Opportunities for Cantargia and AcouSort

-0.07

Correlation Coefficient

Cantargia  AcouSort

Good diversification

The 3 months correlation between Cantargia and AcouSort is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Cantargia AB and AcouSort AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AcouSort AB and Cantargia 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 Cantargia AB are associated (or correlated) with AcouSort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AcouSort AB has no effect on the direction of Cantargia i.e., Cantargia and AcouSort go up and down completely randomly.

Pair Corralation between Cantargia and AcouSort

Assuming the 90 days trading horizon Cantargia AB is expected to generate 10.15 times more return on investment than AcouSort. However, Cantargia is 10.15 times more volatile than AcouSort AB. It trades about 0.1 of its potential returns per unit of risk. AcouSort AB is currently generating about -0.1 per unit of risk. If you would invest  157.00  in Cantargia AB on April 22, 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	98.39%
Values	Daily Returns

Cantargia AB  vs.  AcouSort AB

Cantargia AB

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cantargia AB are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Cantargia unveiled solid returns over the last few months and may actually be approaching a breakup point.

AcouSort AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days AcouSort AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Cantargia and AcouSort

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

The idea behind Cantargia AB and AcouSort 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.