Correlation Between Moberg Pharma and Cantargia

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

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

Diversification Opportunities for Moberg Pharma and Cantargia

0.22

Correlation Coefficient

Moberg Pharma  Cantargia

Modest diversification

The 3 months correlation between Moberg and Cantargia is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Moberg Pharma AB and Cantargia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cantargia AB and Moberg Pharma 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 Moberg Pharma 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 Moberg Pharma i.e., Moberg Pharma and Cantargia go up and down completely randomly.

Pair Corralation between Moberg Pharma and Cantargia

Assuming the 90 days trading horizon Moberg Pharma is expected to generate 10.0 times less return on investment than Cantargia. But when comparing it to its historical volatility, Moberg Pharma AB is 13.19 times less risky than Cantargia. It trades about 0.14 of its potential returns per unit of risk. Cantargia AB is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  158.00  in Cantargia AB on May 6, 2025 and sell it today you would earn a total of  166.00  from holding Cantargia AB or generate 105.06% return on investment over 90 days.

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

Moberg Pharma AB  vs.  Cantargia AB

Moberg Pharma AB

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Moberg Pharma AB are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental drivers, Moberg Pharma unveiled solid returns over the last few months and may actually be approaching a breakup point.

Cantargia AB

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cantargia AB are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Cantargia unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Moberg Pharma and Cantargia

The main advantage of trading using opposite Moberg Pharma and Cantargia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moberg Pharma 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 Moberg Pharma 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.

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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.