Correlation Between Carlsberg Brewery and Globetronics Tech
Can any of the company-specific risk be diversified away by investing in both Carlsberg Brewery and Globetronics Tech 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 Carlsberg Brewery and Globetronics Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlsberg Brewery Malaysia and Globetronics Tech Bhd, you can compare the effects of market volatilities on Carlsberg Brewery and Globetronics Tech 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 Carlsberg Brewery with a short position of Globetronics Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlsberg Brewery and Globetronics Tech.
Diversification Opportunities for Carlsberg Brewery and Globetronics Tech
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Carlsberg and Globetronics is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Carlsberg Brewery Malaysia and Globetronics Tech Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globetronics Tech Bhd and Carlsberg Brewery 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 Carlsberg Brewery Malaysia are associated (or correlated) with Globetronics Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globetronics Tech Bhd has no effect on the direction of Carlsberg Brewery i.e., Carlsberg Brewery and Globetronics Tech go up and down completely randomly.
Pair Corralation between Carlsberg Brewery and Globetronics Tech
Assuming the 90 days trading horizon Carlsberg Brewery Malaysia is expected to generate 0.27 times more return on investment than Globetronics Tech. However, Carlsberg Brewery Malaysia is 3.68 times less risky than Globetronics Tech. It trades about 0.0 of its potential returns per unit of risk. Globetronics Tech Bhd is currently generating about -0.03 per unit of risk. If you would invest 2,099 in Carlsberg Brewery Malaysia on September 14, 2024 and sell it today you would lose (55.00) from holding Carlsberg Brewery Malaysia or give up 2.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlsberg Brewery Malaysia vs. Globetronics Tech Bhd
Performance |
| Timeline |
| Carlsberg Brewery |
| Globetronics Tech Bhd |
Carlsberg Brewery and Globetronics Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlsberg Brewery and Globetronics Tech
The main advantage of trading using opposite Carlsberg Brewery and Globetronics Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlsberg Brewery position performs unexpectedly, Globetronics Tech 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 Globetronics Tech will offset losses from the drop in Globetronics Tech's long position.| Carlsberg Brewery vs. Al Aqar Healthcare | Carlsberg Brewery vs. PMB Technology Bhd | Carlsberg Brewery vs. Digistar Bhd | Carlsberg Brewery vs. Minetech Resources Bhd |
| Globetronics Tech vs. Carlsberg Brewery Malaysia | Globetronics Tech vs. Diversified Gateway Solutions | Globetronics Tech vs. Dataprep Holdings Bhd | Globetronics Tech vs. Uchi Technologies Bhd |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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