Correlation Between Combigene and AcouSort

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

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

Diversification Opportunities for Combigene and AcouSort

-0.01

Correlation Coefficient

Combigene  AcouSort

Good diversification

The 3 months correlation between Combigene and AcouSort is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Combigene AB and AcouSort AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AcouSort AB and Combigene 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 Combigene 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 Combigene i.e., Combigene and AcouSort go up and down completely randomly.

Pair Corralation between Combigene and AcouSort

Assuming the 90 days trading horizon Combigene AB is expected to generate 0.87 times more return on investment than AcouSort. However, Combigene AB is 1.15 times less risky than AcouSort. It trades about 0.01 of its potential returns per unit of risk. AcouSort AB is currently generating about -0.08 per unit of risk. If you would invest  241.00  in Combigene AB on April 23, 2025 and sell it today you would lose (1.00) from holding Combigene AB or give up 0.41% of portfolio value over 90 days.

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

Combigene AB  vs.  AcouSort AB

Combigene AB

Risk-Adjusted Performance

Very Weak

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

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 Combigene and AcouSort

The main advantage of trading using opposite Combigene and AcouSort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Combigene 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 Combigene 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.

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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.