Correlation Between BankIn Bredygt and Cessatech
Can any of the company-specific risk be diversified away by investing in both BankIn Bredygt and Cessatech 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 BankIn Bredygt and Cessatech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BankIn Bredygt Klimaakt and Cessatech AS, you can compare the effects of market volatilities on BankIn Bredygt and Cessatech 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 BankIn Bredygt with a short position of Cessatech. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankIn Bredygt and Cessatech.
Diversification Opportunities for BankIn Bredygt and Cessatech
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between BankIn and Cessatech is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding BankIn Bredygt Klimaakt and Cessatech AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cessatech AS and BankIn Bredygt 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 BankIn Bredygt Klimaakt are associated (or correlated) with Cessatech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cessatech AS has no effect on the direction of BankIn Bredygt i.e., BankIn Bredygt and Cessatech go up and down completely randomly.
Pair Corralation between BankIn Bredygt and Cessatech
Assuming the 90 days trading horizon BankIn Bredygt Klimaakt is expected to generate 0.35 times more return on investment than Cessatech. However, BankIn Bredygt Klimaakt is 2.83 times less risky than Cessatech. It trades about 0.04 of its potential returns per unit of risk. Cessatech AS is currently generating about -0.05 per unit of risk. If you would invest 9,900 in BankIn Bredygt Klimaakt on August 31, 2024 and sell it today you would earn a total of 835.00 from holding BankIn Bredygt Klimaakt or generate 8.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 12.2% |
| Values | Daily Returns |
BankIn Bredygt Klimaakt vs. Cessatech AS
Performance |
| Timeline |
| BankIn Bredygt Klimaakt |
| Cessatech AS |
BankIn Bredygt and Cessatech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BankIn Bredygt and Cessatech
The main advantage of trading using opposite BankIn Bredygt and Cessatech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankIn Bredygt position performs unexpectedly, Cessatech 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 Cessatech will offset losses from the drop in Cessatech's long position.| BankIn Bredygt vs. Skjern Bank AS | BankIn Bredygt vs. Moens Bank AS | BankIn Bredygt vs. Scandinavian Medical Solutions | BankIn Bredygt vs. Embla Medical hf |
| Cessatech vs. Novo Nordisk AS | Cessatech vs. Nordea Bank Abp | Cessatech vs. DSV Panalpina AS | Cessatech vs. AP Mller |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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