Correlation Between Calliditas Therapeutics and Avianca Holdings
Can any of the company-specific risk be diversified away by investing in both Calliditas Therapeutics and Avianca Holdings 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 Calliditas Therapeutics and Avianca Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calliditas Therapeutics and Avianca Holdings SA, you can compare the effects of market volatilities on Calliditas Therapeutics and Avianca Holdings 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 Calliditas Therapeutics with a short position of Avianca Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calliditas Therapeutics and Avianca Holdings.
Diversification Opportunities for Calliditas Therapeutics and Avianca Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Calliditas and Avianca is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Calliditas Therapeutics and Avianca Holdings SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avianca Holdings and Calliditas Therapeutics 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 Calliditas Therapeutics are associated (or correlated) with Avianca Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avianca Holdings has no effect on the direction of Calliditas Therapeutics i.e., Calliditas Therapeutics and Avianca Holdings go up and down completely randomly.
Pair Corralation between Calliditas Therapeutics and Avianca Holdings
If you would invest 2,132 in Calliditas Therapeutics on February 29, 2024 and sell it today you would earn a total of 1,663 from holding Calliditas Therapeutics or generate 78.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Calliditas Therapeutics vs. Avianca Holdings SA
Performance |
Timeline |
Calliditas Therapeutics |
Avianca Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Calliditas Therapeutics and Avianca Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Calliditas Therapeutics and Avianca Holdings
The main advantage of trading using opposite Calliditas Therapeutics and Avianca Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calliditas Therapeutics position performs unexpectedly, Avianca Holdings 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 Avianca Holdings will offset losses from the drop in Avianca Holdings' long position.The idea behind Calliditas Therapeutics and Avianca Holdings SA 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.
Avianca Holdings vs. Chester Mining | Avianca Holdings vs. Highway Holdings Limited | Avianca Holdings vs. US Silica Holdings | Avianca Holdings vs. FMC Corporation |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |