Correlation Between Ambu AS and Bang Olufsen
Can any of the company-specific risk be diversified away by investing in both Ambu AS and Bang Olufsen 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 Ambu AS and Bang Olufsen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ambu AS and Bang Olufsen, you can compare the effects of market volatilities on Ambu AS and Bang Olufsen 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 Ambu AS with a short position of Bang Olufsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambu AS and Bang Olufsen.
Diversification Opportunities for Ambu AS and Bang Olufsen
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ambu and Bang is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Ambu AS and Bang Olufsen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bang Olufsen and Ambu AS 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 Ambu AS are associated (or correlated) with Bang Olufsen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bang Olufsen has no effect on the direction of Ambu AS i.e., Ambu AS and Bang Olufsen go up and down completely randomly.
Pair Corralation between Ambu AS and Bang Olufsen
Assuming the 90 days trading horizon Ambu AS is expected to generate 1.08 times more return on investment than Bang Olufsen. However, Ambu AS is 1.08 times more volatile than Bang Olufsen. It trades about 0.01 of its potential returns per unit of risk. Bang Olufsen is currently generating about -0.01 per unit of risk. If you would invest 10,880 in Ambu AS on September 1, 2024 and sell it today you would earn a total of 220.00 from holding Ambu AS or generate 2.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
Ambu AS vs. Bang Olufsen
Performance |
| Timeline |
| Ambu AS |
| Bang Olufsen |
Ambu AS and Bang Olufsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambu AS and Bang Olufsen
The main advantage of trading using opposite Ambu AS and Bang Olufsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambu AS position performs unexpectedly, Bang Olufsen 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 Bang Olufsen will offset losses from the drop in Bang Olufsen's long position.| Ambu AS vs. Bavarian Nordic | Ambu AS vs. Genmab AS | Ambu AS vs. GN Store Nord | Ambu AS vs. DSV Panalpina AS |
| Bang Olufsen vs. Broendbyernes IF Fodbold | Bang Olufsen vs. Matas AS | Bang Olufsen vs. NKT AS | Bang Olufsen vs. Jyske Bank 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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