Correlation Between SinterCast and Klaria Pharma

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

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

Diversification Opportunities for SinterCast and Klaria Pharma

-0.94

Correlation Coefficient

SinterCast  Klaria Pharma

Pay attention - limited upside

The 3 months correlation between SinterCast and Klaria is -0.94. Overlapping area represents the amount of risk that can be diversified away by holding SinterCast AB and Klaria Pharma Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klaria Pharma Holding and SinterCast 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 SinterCast AB are associated (or correlated) with Klaria Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klaria Pharma Holding has no effect on the direction of SinterCast i.e., SinterCast and Klaria Pharma go up and down completely randomly.

Pair Corralation between SinterCast and Klaria Pharma

Assuming the 90 days trading horizon SinterCast AB is expected to generate 0.22 times more return on investment than Klaria Pharma. However, SinterCast AB is 4.63 times less risky than Klaria Pharma. It trades about 0.17 of its potential returns per unit of risk. Klaria Pharma Holding is currently generating about -0.14 per unit of risk. If you would invest  10,002  in SinterCast AB on April 24, 2025 and sell it today you would earn a total of  1,548  from holding SinterCast AB or generate 15.48% return on investment over 90 days.

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

SinterCast AB  vs.  Klaria Pharma Holding

SinterCast AB

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SinterCast AB are ranked lower than 13 (%) 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.

Klaria Pharma Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Klaria Pharma Holding 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.

Pair Trading with SinterCast and Klaria Pharma

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

The idea behind SinterCast AB and Klaria Pharma Holding 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.