Correlation Between Acarix AS and Combigene

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

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

Diversification Opportunities for Acarix AS and Combigene

0.0

Correlation Coefficient

Acarix AS  Combigene

Pay attention - limited upside

The 3 months correlation between Acarix and Combigene is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Acarix AS and Combigene AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Combigene AB and Acarix AS 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 Acarix AS are associated (or correlated) with Combigene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Combigene AB has no effect on the direction of Acarix AS i.e., Acarix AS and Combigene go up and down completely randomly.

Pair Corralation between Acarix AS and Combigene

Assuming the 90 days trading horizon Acarix AS is expected to under-perform the Combigene. But the stock apears to be less risky and, when comparing its historical volatility, Acarix AS is 1.69 times less risky than Combigene. The stock trades about -0.04 of its potential returns per unit of risk. The Combigene AB is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  246.00  in Combigene AB on September 14, 2024 and sell it today you would earn a total of  24.00  from holding Combigene AB or generate 9.76% return on investment over 90 days.

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

Acarix AS  vs.  Combigene AB

Acarix AS

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Acarix AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Combigene AB

Risk-Adjusted Performance

4 of 100

Insignificant

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

Pair Trading with Acarix AS and Combigene

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

The idea behind Acarix AS and Combigene 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.