Correlation Between Prostatype Genomics and Hansa Biopharma

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

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

Diversification Opportunities for Prostatype Genomics and Hansa Biopharma

-0.45

Correlation Coefficient

Prostatype Genomics  Hansa Biopharma

Very good diversification

The 3 months correlation between Prostatype and Hansa is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Prostatype Genomics AB and Hansa Biopharma AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hansa Biopharma AB and Prostatype Genomics 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 Prostatype Genomics AB are associated (or correlated) with Hansa Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hansa Biopharma AB has no effect on the direction of Prostatype Genomics i.e., Prostatype Genomics and Hansa Biopharma go up and down completely randomly.

Pair Corralation between Prostatype Genomics and Hansa Biopharma

Assuming the 90 days trading horizon Prostatype Genomics is expected to generate 3.57 times less return on investment than Hansa Biopharma. In addition to that, Prostatype Genomics is 3.16 times more volatile than Hansa Biopharma AB. It trades about 0.0 of its total potential returns per unit of risk. Hansa Biopharma AB is currently generating about 0.05 per unit of volatility. If you would invest  2,368  in Hansa Biopharma AB on April 24, 2025 and sell it today you would earn a total of  220.00  from holding Hansa Biopharma AB or generate 9.29% return on investment over 90 days.

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

Prostatype Genomics AB  vs.  Hansa Biopharma AB

Prostatype Genomics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Prostatype Genomics AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Prostatype Genomics is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Hansa Biopharma AB

Risk-Adjusted Performance

Insignificant

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

Pair Trading with Prostatype Genomics and Hansa Biopharma

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

The idea behind Prostatype Genomics AB and Hansa Biopharma 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.