Correlation Between Moberg Pharma and SinterCast

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

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

Diversification Opportunities for Moberg Pharma and SinterCast

0.82

Correlation Coefficient

Moberg Pharma  SinterCast

Very poor diversification

The 3 months correlation between Moberg and SinterCast is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Moberg Pharma AB and SinterCast AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SinterCast AB and Moberg Pharma 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 Moberg Pharma AB are associated (or correlated) with SinterCast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SinterCast AB has no effect on the direction of Moberg Pharma i.e., Moberg Pharma and SinterCast go up and down completely randomly.

Pair Corralation between Moberg Pharma and SinterCast

Assuming the 90 days trading horizon Moberg Pharma is expected to generate 1.39 times less return on investment than SinterCast. In addition to that, Moberg Pharma is 1.88 times more volatile than SinterCast AB. It trades about 0.07 of its total potential returns per unit of risk. SinterCast AB is currently generating about 0.19 per unit of volatility. If you would invest  10,076  in SinterCast AB on April 23, 2025 and sell it today you would earn a total of  1,724  from holding SinterCast AB or generate 17.11% return on investment over 90 days.

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

Moberg Pharma AB  vs.  SinterCast AB

Moberg Pharma AB

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Moberg Pharma AB are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental drivers, Moberg Pharma may actually be approaching a critical reversion point that can send shares even higher in August 2025.

SinterCast AB

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SinterCast AB are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, SinterCast unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Moberg Pharma and SinterCast

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

The idea behind Moberg Pharma AB and SinterCast 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.