Correlation Between Sprint Bioscience and Prostatype Genomics

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

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

Diversification Opportunities for Sprint Bioscience and Prostatype Genomics

-0.07

Correlation Coefficient

Sprint Bioscience  Prostatype Genomics

Good diversification

The 3 months correlation between Sprint and Prostatype is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Sprint Bioscience AB and Prostatype Genomics AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prostatype Genomics and Sprint Bioscience 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 Sprint Bioscience AB are associated (or correlated) with Prostatype Genomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prostatype Genomics has no effect on the direction of Sprint Bioscience i.e., Sprint Bioscience and Prostatype Genomics go up and down completely randomly.

Pair Corralation between Sprint Bioscience and Prostatype Genomics

Assuming the 90 days trading horizon Sprint Bioscience is expected to generate 3.35 times less return on investment than Prostatype Genomics. But when comparing it to its historical volatility, Sprint Bioscience AB is 2.26 times less risky than Prostatype Genomics. It trades about 0.04 of its potential returns per unit of risk. Prostatype Genomics AB is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  97.00  in Prostatype Genomics AB on May 9, 2025 and sell it today you would lose (1.00) from holding Prostatype Genomics AB or give up 1.03% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Sprint Bioscience AB  vs.  Prostatype Genomics AB

Sprint Bioscience

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sprint Bioscience AB are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Sprint Bioscience sustained solid returns over the last few months and may actually be approaching a breakup point.

Prostatype Genomics

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Prostatype Genomics AB are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Prostatype Genomics sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sprint Bioscience and Prostatype Genomics

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

The idea behind Sprint Bioscience AB and Prostatype Genomics 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.