Correlation Between Borregaard ASA and Cloudberry Clean
Can any of the company-specific risk be diversified away by investing in both Borregaard ASA and Cloudberry Clean 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 Borregaard ASA and Cloudberry Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Borregaard ASA and Cloudberry Clean Energy, you can compare the effects of market volatilities on Borregaard ASA and Cloudberry Clean 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 Borregaard ASA with a short position of Cloudberry Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borregaard ASA and Cloudberry Clean.
Diversification Opportunities for Borregaard ASA and Cloudberry Clean
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Borregaard and Cloudberry is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Borregaard ASA and Cloudberry Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cloudberry Clean Energy and Borregaard ASA 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 Borregaard ASA are associated (or correlated) with Cloudberry Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cloudberry Clean Energy has no effect on the direction of Borregaard ASA i.e., Borregaard ASA and Cloudberry Clean go up and down completely randomly.
Pair Corralation between Borregaard ASA and Cloudberry Clean
Assuming the 90 days trading horizon Borregaard ASA is expected to under-perform the Cloudberry Clean. But the stock apears to be less risky and, when comparing its historical volatility, Borregaard ASA is 1.31 times less risky than Cloudberry Clean. The stock trades about -0.33 of its potential returns per unit of risk. The Cloudberry Clean Energy is currently generating about -0.2 of returns per unit of risk over similar time horizon. If you would invest 1,200 in Cloudberry Clean Energy on August 25, 2024 and sell it today you would lose (92.00) from holding Cloudberry Clean Energy or give up 7.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Borregaard ASA vs. Cloudberry Clean Energy
Performance |
| Timeline |
| Borregaard ASA |
| Cloudberry Clean Energy |
Borregaard ASA and Cloudberry Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Borregaard ASA and Cloudberry Clean
The main advantage of trading using opposite Borregaard ASA and Cloudberry Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Borregaard ASA position performs unexpectedly, Cloudberry Clean 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 Cloudberry Clean will offset losses from the drop in Cloudberry Clean's long position.| Borregaard ASA vs. Veidekke ASA | Borregaard ASA vs. Orkla ASA | Borregaard ASA vs. Kongsberg Gruppen ASA | Borregaard ASA vs. Storebrand ASA |
| Cloudberry Clean vs. Bonheur | Cloudberry Clean vs. Scatec Solar OL | Cloudberry Clean vs. Aker Carbon Capture | Cloudberry Clean vs. Cadeler 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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