Correlation Between Kancera AB and Combigene

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

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

Diversification Opportunities for Kancera AB and Combigene

-0.24

Correlation Coefficient

Kancera AB  Combigene

Very good diversification

The 3 months correlation between Kancera and Combigene is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Kancera AB and Combigene AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Combigene AB and Kancera AB 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 Kancera AB are associated (or correlated) with Combigene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Combigene AB has no effect on the direction of Kancera AB i.e., Kancera AB and Combigene go up and down completely randomly.

Pair Corralation between Kancera AB and Combigene

Assuming the 90 days trading horizon Kancera AB is expected to generate 2.06 times more return on investment than Combigene. However, Kancera AB is 2.06 times more volatile than Combigene AB. It trades about 0.06 of its potential returns per unit of risk. Combigene AB is currently generating about 0.02 per unit of risk. If you would invest  128.00  in Kancera AB on April 22, 2025 and sell it today you would earn a total of  17.00  from holding Kancera AB or generate 13.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Kancera AB  vs.  Combigene AB

Kancera AB

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Kancera AB are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Kancera AB unveiled solid returns over the last few months and may actually be approaching a breakup point.

Combigene AB

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Combigene AB are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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.

Pair Trading with Kancera AB and Combigene

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

The idea behind Kancera AB and Combigene 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.