Correlation Between SenzaGen and Promimic

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

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

Diversification Opportunities for SenzaGen and Promimic

-0.07

Correlation Coefficient

SenzaGen  Promimic

Good diversification

The 3 months correlation between SenzaGen and Promimic is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding SenzaGen AB and Promimic AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Promimic AB and SenzaGen 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 SenzaGen AB are associated (or correlated) with Promimic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Promimic AB has no effect on the direction of SenzaGen i.e., SenzaGen and Promimic go up and down completely randomly.

Pair Corralation between SenzaGen and Promimic

Assuming the 90 days trading horizon SenzaGen AB is expected to generate 0.73 times more return on investment than Promimic. However, SenzaGen AB is 1.38 times less risky than Promimic. It trades about 0.04 of its potential returns per unit of risk. Promimic AB is currently generating about -0.03 per unit of risk. If you would invest  508.00  in SenzaGen AB on April 22, 2025 and sell it today you would earn a total of  30.00  from holding SenzaGen AB or generate 5.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

SenzaGen AB  vs.  Promimic AB

SenzaGen AB

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SenzaGen AB are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, SenzaGen unveiled solid returns over the last few months and may actually be approaching a breakup point.

Promimic AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Promimic AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting 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.

Pair Trading with SenzaGen and Promimic

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

The idea behind SenzaGen AB and Promimic 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.