Correlation Between Beowulf Mining and CDON AB
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By analyzing existing cross correlation between Beowulf Mining PLC and CDON AB, you can compare the effects of market volatilities on Beowulf Mining and CDON AB 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 Beowulf Mining with a short position of CDON AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beowulf Mining and CDON AB.
Diversification Opportunities for Beowulf Mining and CDON AB
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Beowulf and CDON is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Beowulf Mining PLC and CDON AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDON AB and Beowulf Mining 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 Beowulf Mining PLC are associated (or correlated) with CDON AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDON AB has no effect on the direction of Beowulf Mining i.e., Beowulf Mining and CDON AB go up and down completely randomly.
Pair Corralation between Beowulf Mining and CDON AB
Assuming the 90 days trading horizon Beowulf Mining PLC is expected to under-perform the CDON AB. In addition to that, Beowulf Mining is 3.03 times more volatile than CDON AB. It trades about -0.24 of its total potential returns per unit of risk. CDON AB is currently generating about -0.02 per unit of volatility. If you would invest 9,720 in CDON AB on September 1, 2024 and sell it today you would lose (100.00) from holding CDON AB or give up 1.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Beowulf Mining PLC vs. CDON AB
Performance |
| Timeline |
| Beowulf Mining PLC |
| CDON AB |
Beowulf Mining and CDON AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beowulf Mining and CDON AB
The main advantage of trading using opposite Beowulf Mining and CDON AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beowulf Mining position performs unexpectedly, CDON AB 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 CDON AB will offset losses from the drop in CDON AB's long position.| Beowulf Mining vs. Train Alliance Sweden | Beowulf Mining vs. Swedbank AB | Beowulf Mining vs. Nitro Games Oyj | Beowulf Mining vs. Havsfrun Investment AB |
| CDON AB vs. AstraZeneca PLC | CDON AB vs. Investor AB ser | CDON AB vs. Investor AB ser | CDON AB vs. Atlas Copco AB |
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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