Correlation Between Prostatype Genomics and Sectra AB

Can any of the company-specific risk be diversified away by investing in both Prostatype Genomics and Sectra 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 Prostatype Genomics and Sectra AB 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 Sectra AB, you can compare the effects of market volatilities on Prostatype Genomics and Sectra 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 Prostatype Genomics with a short position of Sectra AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prostatype Genomics and Sectra AB.

Diversification Opportunities for Prostatype Genomics and Sectra AB

-0.74

Correlation Coefficient

Prostatype Genomics  Sectra AB

Pay attention - limited upside

The 3 months correlation between Prostatype and Sectra is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Prostatype Genomics AB and Sectra AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sectra 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 Sectra AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sectra AB has no effect on the direction of Prostatype Genomics i.e., Prostatype Genomics and Sectra AB go up and down completely randomly.

Pair Corralation between Prostatype Genomics and Sectra AB

Assuming the 90 days trading horizon Prostatype Genomics AB is expected to under-perform the Sectra AB. In addition to that, Prostatype Genomics is 7.45 times more volatile than Sectra AB. It trades about -0.01 of its total potential returns per unit of risk. Sectra AB is currently generating about 0.27 per unit of volatility. If you would invest  27,140  in Sectra AB on April 20, 2025 and sell it today you would earn a total of  9,100  from holding Sectra AB or generate 33.53% return on investment over 90 days.

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

Prostatype Genomics AB  vs.  Sectra 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 uncertain performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Sectra AB

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Sectra AB are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain fundamental indicators, Sectra AB sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Prostatype Genomics and Sectra AB

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

The idea behind Prostatype Genomics AB and Sectra 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.