Correlation Between Bankers Investment and Carlsberg
Can any of the company-specific risk be diversified away by investing in both Bankers Investment and Carlsberg 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 Bankers Investment and Carlsberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bankers Investment Trust and Carlsberg AS B, you can compare the effects of market volatilities on Bankers Investment and Carlsberg 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 Bankers Investment with a short position of Carlsberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bankers Investment and Carlsberg.
Diversification Opportunities for Bankers Investment and Carlsberg
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bankers and Carlsberg is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Bankers Investment Trust and Carlsberg AS B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlsberg AS B and Bankers Investment 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 Bankers Investment Trust are associated (or correlated) with Carlsberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlsberg AS B has no effect on the direction of Bankers Investment i.e., Bankers Investment and Carlsberg go up and down completely randomly.
Pair Corralation between Bankers Investment and Carlsberg
Assuming the 90 days trading horizon Bankers Investment Trust is expected to generate 0.33 times more return on investment than Carlsberg. However, Bankers Investment Trust is 3.01 times less risky than Carlsberg. It trades about 0.22 of its potential returns per unit of risk. Carlsberg AS B is currently generating about -0.18 per unit of risk. If you would invest 11,200 in Bankers Investment Trust on August 27, 2024 and sell it today you would earn a total of 280.00 from holding Bankers Investment Trust or generate 2.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bankers Investment Trust vs. Carlsberg AS B
Performance |
| Timeline |
| Bankers Investment Trust |
| Carlsberg AS B |
Bankers Investment and Carlsberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bankers Investment and Carlsberg
The main advantage of trading using opposite Bankers Investment and Carlsberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bankers Investment position performs unexpectedly, Carlsberg 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 Carlsberg will offset losses from the drop in Carlsberg's long position.| Bankers Investment vs. Sunny Optical Technology | Bankers Investment vs. Albion Technology General | Bankers Investment vs. Check Point Software | Bankers Investment vs. Bisichi Mining PLC |
| Carlsberg vs. Darden Restaurants | Carlsberg vs. Thor Mining PLC | Carlsberg vs. Bisichi Mining PLC | Carlsberg vs. Ion Beam Applications |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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