Correlation Between BankInvest Optima and CBrain AS
Can any of the company-specific risk be diversified away by investing in both BankInvest Optima and CBrain AS 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 BankInvest Optima and CBrain AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BankInvest Optima 30 and cBrain AS, you can compare the effects of market volatilities on BankInvest Optima and CBrain AS 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 BankInvest Optima with a short position of CBrain AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankInvest Optima and CBrain AS.
Diversification Opportunities for BankInvest Optima and CBrain AS
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between BankInvest and CBrain is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding BankInvest Optima 30 and cBrain AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on cBrain AS and BankInvest Optima 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 BankInvest Optima 30 are associated (or correlated) with CBrain AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of cBrain AS has no effect on the direction of BankInvest Optima i.e., BankInvest Optima and CBrain AS go up and down completely randomly.
Pair Corralation between BankInvest Optima and CBrain AS
Assuming the 90 days trading horizon BankInvest Optima 30 is expected to generate 0.13 times more return on investment than CBrain AS. However, BankInvest Optima 30 is 7.63 times less risky than CBrain AS. It trades about -0.12 of its potential returns per unit of risk. cBrain AS is currently generating about -0.25 per unit of risk. If you would invest 11,110 in BankInvest Optima 30 on November 27, 2024 and sell it today you would lose (220.00) from holding BankInvest Optima 30 or give up 1.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BankInvest Optima 30 vs. cBrain AS
Performance |
| Timeline |
| BankInvest Optima |
| cBrain AS |
BankInvest Optima and CBrain AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BankInvest Optima and CBrain AS
The main advantage of trading using opposite BankInvest Optima and CBrain AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankInvest Optima position performs unexpectedly, CBrain AS 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 CBrain AS will offset losses from the drop in CBrain AS's long position.| BankInvest Optima vs. Nordfyns Bank AS | BankInvest Optima vs. Nordinvestments AS | BankInvest Optima vs. Fynske Bank AS | BankInvest Optima vs. TROPHY GAMES Development |
| CBrain AS vs. ChemoMetec AS | CBrain AS vs. Ambu AS | CBrain AS vs. Genmab AS | CBrain AS 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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