Correlation Between SaverOne 2014 and Novanta

Can any of the company-specific risk be diversified away by investing in both SaverOne 2014 and Novanta 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 SaverOne 2014 and Novanta into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SaverOne 2014 Ltd and Novanta, you can compare the effects of market volatilities on SaverOne 2014 and Novanta 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 SaverOne 2014 with a short position of Novanta. Check out your portfolio center. Please also check ongoing floating volatility patterns of SaverOne 2014 and Novanta.

Diversification Opportunities for SaverOne 2014 and Novanta

0.16

Correlation Coefficient

SaverOne 2014  Novanta

Average diversification

The 3 months correlation between SaverOne and Novanta is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding SaverOne 2014 Ltd and Novanta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Novanta and SaverOne 2014 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 SaverOne 2014 Ltd are associated (or correlated) with Novanta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Novanta has no effect on the direction of SaverOne 2014 i.e., SaverOne 2014 and Novanta go up and down completely randomly.

Pair Corralation between SaverOne 2014 and Novanta

Assuming the 90 days horizon SaverOne 2014 Ltd is expected to generate 16.16 times more return on investment than Novanta. However, SaverOne 2014 is 16.16 times more volatile than Novanta. It trades about 0.03 of its potential returns per unit of risk. Novanta is currently generating about -0.02 per unit of risk. If you would invest  6.50  in SaverOne 2014 Ltd on September 3, 2024 and sell it today you would lose (5.46) from holding SaverOne 2014 Ltd or give up 84.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	65.63%
Values	Daily Returns

SaverOne 2014 Ltd  vs.  Novanta

SaverOne 2014

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SaverOne 2014 Ltd are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady technical and fundamental indicators, SaverOne 2014 showed solid returns over the last few months and may actually be approaching a breakup point.

Novanta

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Novanta has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Novanta is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with SaverOne 2014 and Novanta

The main advantage of trading using opposite SaverOne 2014 and Novanta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SaverOne 2014 position performs unexpectedly, Novanta 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 Novanta will offset losses from the drop in Novanta's long position.

The idea behind SaverOne 2014 Ltd and Novanta 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.