Correlation Between Magle Chemoswed and Corline Biomedical
Can any of the company-specific risk be diversified away by investing in both Magle Chemoswed and Corline Biomedical 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 Magle Chemoswed and Corline Biomedical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magle Chemoswed Holding and Corline Biomedical AB, you can compare the effects of market volatilities on Magle Chemoswed and Corline Biomedical 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 Magle Chemoswed with a short position of Corline Biomedical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magle Chemoswed and Corline Biomedical.
Diversification Opportunities for Magle Chemoswed and Corline Biomedical
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Magle and Corline is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Magle Chemoswed Holding and Corline Biomedical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corline Biomedical and Magle Chemoswed 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 Magle Chemoswed Holding are associated (or correlated) with Corline Biomedical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corline Biomedical has no effect on the direction of Magle Chemoswed i.e., Magle Chemoswed and Corline Biomedical go up and down completely randomly.
Pair Corralation between Magle Chemoswed and Corline Biomedical
Assuming the 90 days trading horizon Magle Chemoswed Holding is expected to under-perform the Corline Biomedical. But the stock apears to be less risky and, when comparing its historical volatility, Magle Chemoswed Holding is 1.88 times less risky than Corline Biomedical. The stock trades about -0.11 of its potential returns per unit of risk. The Corline Biomedical AB is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,500 in Corline Biomedical AB on August 30, 2025 and sell it today you would earn a total of 310.00 from holding Corline Biomedical AB or generate 20.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Magle Chemoswed Holding vs. Corline Biomedical AB
Performance |
| Timeline |
| Magle Chemoswed Holding |
| Corline Biomedical |
Magle Chemoswed and Corline Biomedical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magle Chemoswed and Corline Biomedical
The main advantage of trading using opposite Magle Chemoswed and Corline Biomedical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magle Chemoswed position performs unexpectedly, Corline Biomedical 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 Corline Biomedical will offset losses from the drop in Corline Biomedical's long position.| Magle Chemoswed vs. Nordic Asia Investment | Magle Chemoswed vs. LL Lucky Games | Magle Chemoswed vs. Axfood AB | Magle Chemoswed vs. USWE Sports AB |
| Corline Biomedical vs. BioArctic AB | Corline Biomedical vs. Nanoform Finland Plc | Corline Biomedical vs. BioInvent International AB | Corline Biomedical vs. USWE Sports AB |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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