Correlation Between Carlsberg Brewery and Duopharma Biotech
Can any of the company-specific risk be diversified away by investing in both Carlsberg Brewery and Duopharma Biotech 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 Duopharma Biotech 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 Duopharma Biotech Bhd, you can compare the effects of market volatilities on Carlsberg Brewery and Duopharma Biotech 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 Duopharma Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlsberg Brewery and Duopharma Biotech.
Diversification Opportunities for Carlsberg Brewery and Duopharma Biotech
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Carlsberg and Duopharma is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Carlsberg Brewery Malaysia and Duopharma Biotech Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duopharma Biotech 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 Duopharma Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duopharma Biotech Bhd has no effect on the direction of Carlsberg Brewery i.e., Carlsberg Brewery and Duopharma Biotech go up and down completely randomly.
Pair Corralation between Carlsberg Brewery and Duopharma Biotech
Assuming the 90 days trading horizon Carlsberg Brewery Malaysia is expected to generate 0.61 times more return on investment than Duopharma Biotech. However, Carlsberg Brewery Malaysia is 1.64 times less risky than Duopharma Biotech. It trades about 0.05 of its potential returns per unit of risk. Duopharma Biotech Bhd is currently generating about 0.01 per unit of risk. If you would invest 1,901 in Carlsberg Brewery Malaysia on November 2, 2024 and sell it today you would earn a total of 89.00 from holding Carlsberg Brewery Malaysia or generate 4.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlsberg Brewery Malaysia vs. Duopharma Biotech Bhd
Performance |
| Timeline |
| Carlsberg Brewery |
| Duopharma Biotech Bhd |
Carlsberg Brewery and Duopharma Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlsberg Brewery and Duopharma Biotech
The main advantage of trading using opposite Carlsberg Brewery and Duopharma Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlsberg Brewery position performs unexpectedly, Duopharma Biotech 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 Duopharma Biotech will offset losses from the drop in Duopharma Biotech's long position.| Carlsberg Brewery vs. Star Media Group | Carlsberg Brewery vs. Computer Forms Bhd | Carlsberg Brewery vs. Choo Bee Metal | Carlsberg Brewery vs. PMB Technology Bhd |
| Duopharma Biotech vs. Apex Healthcare Bhd | Duopharma Biotech vs. Nexgram Holdings Bhd | Duopharma Biotech vs. Techfast Holdings 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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