Correlation Between Ambu AS and Copenhagen Airports
Can any of the company-specific risk be diversified away by investing in both Ambu AS and Copenhagen Airports 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 Copenhagen Airports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ambu AS and Copenhagen Airports AS, you can compare the effects of market volatilities on Ambu AS and Copenhagen Airports 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 Copenhagen Airports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambu AS and Copenhagen Airports.
Diversification Opportunities for Ambu AS and Copenhagen Airports
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ambu and Copenhagen is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ambu AS and Copenhagen Airports AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Copenhagen Airports 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 Copenhagen Airports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Copenhagen Airports has no effect on the direction of Ambu AS i.e., Ambu AS and Copenhagen Airports go up and down completely randomly.
Pair Corralation between Ambu AS and Copenhagen Airports
Assuming the 90 days trading horizon Ambu AS is expected to generate 1.0 times less return on investment than Copenhagen Airports. In addition to that, Ambu AS is 1.75 times more volatile than Copenhagen Airports AS. It trades about 0.08 of its total potential returns per unit of risk. Copenhagen Airports AS is currently generating about 0.15 per unit of volatility. If you would invest 632,000 in Copenhagen Airports AS on November 27, 2024 and sell it today you would earn a total of 14,000 from holding Copenhagen Airports AS or generate 2.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ambu AS vs. Copenhagen Airports AS
Performance |
| Timeline |
| Ambu AS |
| Copenhagen Airports |
Ambu AS and Copenhagen Airports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambu AS and Copenhagen Airports
The main advantage of trading using opposite Ambu AS and Copenhagen Airports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambu AS position performs unexpectedly, Copenhagen Airports 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 Copenhagen Airports will offset losses from the drop in Copenhagen Airports' long position.| Ambu AS vs. Bavarian Nordic | Ambu AS vs. Genmab AS | Ambu AS vs. GN Store Nord | Ambu AS vs. DSV Panalpina 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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