Correlation Between Moleculin Biotech and SWEDISH MATCH

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Moleculin Biotech and SWEDISH MATCH 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 Moleculin Biotech and SWEDISH MATCH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moleculin Biotech CS and SWEDISH MATCH AB, you can compare the effects of market volatilities on Moleculin Biotech and SWEDISH MATCH 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 Moleculin Biotech with a short position of SWEDISH MATCH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moleculin Biotech and SWEDISH MATCH.

Diversification Opportunities for Moleculin Biotech and SWEDISH MATCH

-0.17
  Correlation Coefficient

Good diversification

The 3 months correlation between Moleculin and SWEDISH is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Moleculin Biotech CS and SWEDISH MATCH AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SWEDISH MATCH AB and Moleculin Biotech 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 Moleculin Biotech CS are associated (or correlated) with SWEDISH MATCH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SWEDISH MATCH AB has no effect on the direction of Moleculin Biotech i.e., Moleculin Biotech and SWEDISH MATCH go up and down completely randomly.

Pair Corralation between Moleculin Biotech and SWEDISH MATCH

Given the investment horizon of 90 days Moleculin Biotech CS is expected to under-perform the SWEDISH MATCH. But the stock apears to be less risky and, when comparing its historical volatility, Moleculin Biotech CS is 1.22 times less risky than SWEDISH MATCH. The stock trades about -0.06 of its potential returns per unit of risk. The SWEDISH MATCH AB is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  923.00  in SWEDISH MATCH AB on August 31, 2022 and sell it today you would earn a total of  39.00  from holding SWEDISH MATCH AB or generate 4.23% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Moleculin Biotech CS  vs.  SWEDISH MATCH AB

 Performance (%) 
       Timeline  
Moleculin Biotech 
Moleculin Performance
0 of 100
Over the last 90 days Moleculin Biotech CS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of 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.

Moleculin Price Channel

SWEDISH MATCH AB 
SWEDISH Performance
3 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in SWEDISH MATCH AB are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sluggish basic indicators, SWEDISH MATCH exhibited solid returns over the last few months and may actually be approaching a breakup point.

SWEDISH Price Channel

Moleculin Biotech and SWEDISH MATCH Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Moleculin Biotech and SWEDISH MATCH

The main advantage of trading using opposite Moleculin Biotech and SWEDISH MATCH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moleculin Biotech position performs unexpectedly, SWEDISH MATCH 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 SWEDISH MATCH will offset losses from the drop in SWEDISH MATCH's long position.
Moleculin Biotech vs. Siemens Ag ADR
Moleculin Biotech vs. Regeneron Pharmaceuticals
Moleculin Biotech vs. Vertex Pharmaceutic
The idea behind Moleculin Biotech CS and SWEDISH MATCH 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.
SWEDISH MATCH vs. Philip Morris International
SWEDISH MATCH vs. British American Tob
SWEDISH MATCH vs. Altria Group
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

Other Complementary Tools

Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go