Correlation Between Ambu AS and GomSpace Group
Can any of the company-specific risk be diversified away by investing in both Ambu AS and GomSpace Group 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 GomSpace Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ambu AS and GomSpace Group AB, you can compare the effects of market volatilities on Ambu AS and GomSpace Group 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 GomSpace Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambu AS and GomSpace Group.
Diversification Opportunities for Ambu AS and GomSpace Group
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ambu and GomSpace is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Ambu AS and GomSpace Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GomSpace Group AB 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 GomSpace Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GomSpace Group AB has no effect on the direction of Ambu AS i.e., Ambu AS and GomSpace Group go up and down completely randomly.
Pair Corralation between Ambu AS and GomSpace Group
Assuming the 90 days trading horizon Ambu AS is expected to generate 2.21 times more return on investment than GomSpace Group. However, Ambu AS is 2.21 times more volatile than GomSpace Group AB. It trades about 0.28 of its potential returns per unit of risk. GomSpace Group AB is currently generating about -0.17 per unit of risk. If you would invest 10,765 in Ambu AS on November 5, 2024 and sell it today you would earn a total of 2,710 from holding Ambu AS or generate 25.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Ambu AS vs. GomSpace Group AB
Performance |
| Timeline |
| Ambu AS |
| GomSpace Group AB |
Ambu AS and GomSpace Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambu AS and GomSpace Group
The main advantage of trading using opposite Ambu AS and GomSpace Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambu AS position performs unexpectedly, GomSpace Group 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 GomSpace Group will offset losses from the drop in GomSpace Group'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 |
| GomSpace Group vs. Ambu AS | GomSpace Group vs. Bavarian Nordic | GomSpace Group vs. Fingerprint Cards AB | GomSpace Group vs. Zealand Pharma 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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