Correlation Between Corline Biomedical and Cantargia

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

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

Diversification Opportunities for Corline Biomedical and Cantargia

0.78

Correlation Coefficient

Corline Biomedical  Cantargia

Poor diversification

The 3 months correlation between Corline and Cantargia is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Corline Biomedical AB and Cantargia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cantargia AB and Corline Biomedical 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 Corline Biomedical AB are associated (or correlated) with Cantargia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cantargia AB has no effect on the direction of Corline Biomedical i.e., Corline Biomedical and Cantargia go up and down completely randomly.

Pair Corralation between Corline Biomedical and Cantargia

Assuming the 90 days trading horizon Corline Biomedical AB is expected to generate 0.7 times more return on investment than Cantargia. However, Corline Biomedical AB is 1.42 times less risky than Cantargia. It trades about 0.01 of its potential returns per unit of risk. Cantargia AB is currently generating about -0.17 per unit of risk. If you would invest  810.00  in Corline Biomedical AB on September 13, 2024 and sell it today you would lose (12.00) from holding Corline Biomedical AB or give up 1.48% of portfolio value over 90 days.

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

Corline Biomedical AB  vs.  Cantargia AB

Corline Biomedical

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Corline Biomedical AB are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Corline Biomedical is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Cantargia AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cantargia AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Corline Biomedical and Cantargia

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

The idea behind Corline Biomedical AB and Cantargia 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.