Correlation Between Scandion Oncology and Isofol Medical

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

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

Diversification Opportunities for Scandion Oncology and Isofol Medical

0.04

Correlation Coefficient

Scandion Oncology  Isofol Medical

Significant diversification

The 3 months correlation between Scandion and Isofol is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Scandion Oncology AS and Isofol Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Isofol Medical AB and Scandion Oncology 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 Scandion Oncology AS are associated (or correlated) with Isofol Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Isofol Medical AB has no effect on the direction of Scandion Oncology i.e., Scandion Oncology and Isofol Medical go up and down completely randomly.

Pair Corralation between Scandion Oncology and Isofol Medical

Assuming the 90 days trading horizon Scandion Oncology AS is expected to generate 2.59 times more return on investment than Isofol Medical. However, Scandion Oncology is 2.59 times more volatile than Isofol Medical AB. It trades about -0.05 of its potential returns per unit of risk. Isofol Medical AB is currently generating about -0.18 per unit of risk. If you would invest  1.12  in Scandion Oncology AS on April 23, 2025 and sell it today you would lose (0.71) from holding Scandion Oncology AS or give up 63.39% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	91.67%
Values	Daily Returns

Scandion Oncology AS  vs.  Isofol Medical AB

Scandion Oncology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Scandion Oncology AS 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.

Isofol Medical AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Isofol Medical 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.

Pair Trading with Scandion Oncology and Isofol Medical

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

The idea behind Scandion Oncology AS and Isofol Medical 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.