Correlation Between Brimstone Investment and Ascendis Health
Can any of the company-specific risk be diversified away by investing in both Brimstone Investment and Ascendis Health 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 Brimstone Investment and Ascendis Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brimstone Investment and Ascendis Health, you can compare the effects of market volatilities on Brimstone Investment and Ascendis Health 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 Brimstone Investment with a short position of Ascendis Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brimstone Investment and Ascendis Health.
Diversification Opportunities for Brimstone Investment and Ascendis Health
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Brimstone and Ascendis is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Brimstone Investment and Ascendis Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascendis Health and Brimstone 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 Brimstone Investment are associated (or correlated) with Ascendis Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascendis Health has no effect on the direction of Brimstone Investment i.e., Brimstone Investment and Ascendis Health go up and down completely randomly.
Pair Corralation between Brimstone Investment and Ascendis Health
Assuming the 90 days trading horizon Brimstone Investment is expected to under-perform the Ascendis Health. In addition to that, Brimstone Investment is 1.53 times more volatile than Ascendis Health. It trades about -0.04 of its total potential returns per unit of risk. Ascendis Health is currently generating about 0.07 per unit of volatility. If you would invest 7,200 in Ascendis Health on August 30, 2024 and sell it today you would earn a total of 700.00 from holding Ascendis Health or generate 9.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brimstone Investment vs. Ascendis Health
Performance |
| Timeline |
| Brimstone Investment |
| Ascendis Health |
Brimstone Investment and Ascendis Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brimstone Investment and Ascendis Health
The main advantage of trading using opposite Brimstone Investment and Ascendis Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brimstone Investment position performs unexpectedly, Ascendis Health 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 Ascendis Health will offset losses from the drop in Ascendis Health's long position.| Brimstone Investment vs. Afine Investments | Brimstone Investment vs. Lesaka Technologies | Brimstone Investment vs. British American Tobacco | Brimstone Investment vs. Frontier Transport Holdings |
| Ascendis Health vs. We Buy Cars | Ascendis Health vs. ABSA Bank Limited | Ascendis Health vs. Standard Bank Group | Ascendis Health vs. Zeder Investments |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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