Correlation Between Broedrene and LED IBond
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By analyzing existing cross correlation between Broedrene AO Johansen and LED iBond International, you can compare the effects of market volatilities on Broedrene and LED IBond 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 Broedrene with a short position of LED IBond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Broedrene and LED IBond.
Diversification Opportunities for Broedrene and LED IBond
Very good diversification
The 3 months correlation between Broedrene and LED is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Broedrene AO Johansen and LED iBond International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LED iBond International and Broedrene 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 Broedrene AO Johansen are associated (or correlated) with LED IBond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LED iBond International has no effect on the direction of Broedrene i.e., Broedrene and LED IBond go up and down completely randomly.
Pair Corralation between Broedrene and LED IBond
Assuming the 90 days trading horizon Broedrene AO Johansen is expected to under-perform the LED IBond. But the stock apears to be less risky and, when comparing its historical volatility, Broedrene AO Johansen is 20.48 times less risky than LED IBond. The stock trades about -0.11 of its potential returns per unit of risk. The LED iBond International is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 16.00 in LED iBond International on August 25, 2024 and sell it today you would earn a total of 16.00 from holding LED iBond International or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Broedrene AO Johansen vs. LED iBond International
Performance |
| Timeline |
| Broedrene AO Johansen |
| LED iBond International |
Broedrene and LED IBond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Broedrene and LED IBond
The main advantage of trading using opposite Broedrene and LED IBond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Broedrene position performs unexpectedly, LED IBond 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 LED IBond will offset losses from the drop in LED IBond's long position.| Broedrene vs. North Media AS | Broedrene vs. Solar AS | Broedrene vs. Per Aarsleff Holding | Broedrene vs. HusCompagniet AS |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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