Correlation Between Airthings ASA and Cambi ASA
Can any of the company-specific risk be diversified away by investing in both Airthings ASA and Cambi ASA 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 Airthings ASA and Cambi ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Airthings ASA and Cambi ASA, you can compare the effects of market volatilities on Airthings ASA and Cambi ASA 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 Airthings ASA with a short position of Cambi ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airthings ASA and Cambi ASA.
Diversification Opportunities for Airthings ASA and Cambi ASA
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Airthings and Cambi is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Airthings ASA and Cambi ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambi ASA and Airthings ASA 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 Airthings ASA are associated (or correlated) with Cambi ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambi ASA has no effect on the direction of Airthings ASA i.e., Airthings ASA and Cambi ASA go up and down completely randomly.
Pair Corralation between Airthings ASA and Cambi ASA
Assuming the 90 days trading horizon Airthings ASA is expected to under-perform the Cambi ASA. But the stock apears to be less risky and, when comparing its historical volatility, Airthings ASA is 1.63 times less risky than Cambi ASA. The stock trades about -0.5 of its potential returns per unit of risk. The Cambi ASA is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 1,505 in Cambi ASA on September 12, 2024 and sell it today you would lose (65.00) from holding Cambi ASA or give up 4.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Airthings ASA vs. Cambi ASA
Performance |
| Timeline |
| Airthings ASA |
| Cambi ASA |
Airthings ASA and Cambi ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airthings ASA and Cambi ASA
The main advantage of trading using opposite Airthings ASA and Cambi ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airthings ASA position performs unexpectedly, Cambi ASA 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 Cambi ASA will offset losses from the drop in Cambi ASA's long position.| Airthings ASA vs. Atlantic Sapphire As | Airthings ASA vs. Vow ASA | Airthings ASA vs. Aker Horizons AS | Airthings ASA vs. Saga Pure ASA |
| Cambi ASA vs. Aker Horizons AS | Cambi ASA vs. Hexagon Purus As | Cambi ASA vs. Huddly AS | Cambi ASA vs. Everfuel AS |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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