Correlation Between CN MODERN and Bollor SE
Can any of the company-specific risk be diversified away by investing in both CN MODERN and Bollor SE 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 CN MODERN and Bollor SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CN MODERN DAIRY and Bollor SE, you can compare the effects of market volatilities on CN MODERN and Bollor SE 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 CN MODERN with a short position of Bollor SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CN MODERN and Bollor SE.
Diversification Opportunities for CN MODERN and Bollor SE
Average diversification
The 3 months correlation between 07M and Bollor is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding CN MODERN DAIRY and Bollor SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bollor SE and CN MODERN 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 CN MODERN DAIRY are associated (or correlated) with Bollor SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bollor SE has no effect on the direction of CN MODERN i.e., CN MODERN and Bollor SE go up and down completely randomly.
Pair Corralation between CN MODERN and Bollor SE
Assuming the 90 days trading horizon CN MODERN is expected to generate 5.28 times less return on investment than Bollor SE. In addition to that, CN MODERN is 1.72 times more volatile than Bollor SE. It trades about 0.01 of its total potential returns per unit of risk. Bollor SE is currently generating about 0.09 per unit of volatility. If you would invest 579.00 in Bollor SE on September 12, 2024 and sell it today you would earn a total of 14.00 from holding Bollor SE or generate 2.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
CN MODERN DAIRY vs. Bollor SE
Performance |
| Timeline |
| CN MODERN DAIRY |
| Bollor SE |
CN MODERN and Bollor SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CN MODERN and Bollor SE
The main advantage of trading using opposite CN MODERN and Bollor SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CN MODERN position performs unexpectedly, Bollor SE 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 Bollor SE will offset losses from the drop in Bollor SE's long position.The idea behind CN MODERN DAIRY and Bollor SE 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.| Bollor SE vs. Media and Games | Bollor SE vs. Penn National Gaming | Bollor SE vs. The Yokohama Rubber | Bollor SE vs. Hyster Yale Materials Handling |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |