Correlation Between Cantargia and Alleima AB

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

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

Diversification Opportunities for Cantargia and Alleima AB

-0.18

Correlation Coefficient

Cantargia  Alleima AB

Good diversification

The 3 months correlation between Cantargia and Alleima is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Cantargia AB and Alleima AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alleima 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 Alleima AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alleima AB has no effect on the direction of Cantargia i.e., Cantargia and Alleima AB go up and down completely randomly.

Pair Corralation between Cantargia and Alleima AB

Assuming the 90 days trading horizon Cantargia AB is expected to generate 13.8 times more return on investment than Alleima AB. However, Cantargia is 13.8 times more volatile than Alleima AB. It trades about 0.1 of its potential returns per unit of risk. Alleima AB is currently generating about -0.01 per unit of risk. If you would invest  156.00  in Cantargia AB on April 24, 2025 and sell it today you would earn a total of  144.00  from holding Cantargia AB or generate 92.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Cantargia AB  vs.  Alleima 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.

Alleima AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Alleima AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Alleima AB is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Cantargia and Alleima AB

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

The idea behind Cantargia AB and Alleima 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.