Correlation Between Carlson Investments and 11 Bit
Can any of the company-specific risk be diversified away by investing in both Carlson Investments and 11 Bit 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 Carlson Investments and 11 Bit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlson Investments SA and 11 bit studios, you can compare the effects of market volatilities on Carlson Investments and 11 Bit 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 Carlson Investments with a short position of 11 Bit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlson Investments and 11 Bit.
Diversification Opportunities for Carlson Investments and 11 Bit
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Carlson and 11B is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Carlson Investments SA and 11 bit studios in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 11 bit studios and Carlson Investments 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 Carlson Investments SA are associated (or correlated) with 11 Bit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 11 bit studios has no effect on the direction of Carlson Investments i.e., Carlson Investments and 11 Bit go up and down completely randomly.
Pair Corralation between Carlson Investments and 11 Bit
Assuming the 90 days trading horizon Carlson Investments SA is expected to generate 0.7 times more return on investment than 11 Bit. However, Carlson Investments SA is 1.43 times less risky than 11 Bit. It trades about -0.08 of its potential returns per unit of risk. 11 bit studios is currently generating about -0.17 per unit of risk. If you would invest 580.00 in Carlson Investments SA on September 13, 2024 and sell it today you would lose (190.00) from holding Carlson Investments SA or give up 32.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlson Investments SA vs. 11 bit studios
Performance |
| Timeline |
| Carlson Investments |
| 11 bit studios |
Carlson Investments and 11 Bit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlson Investments and 11 Bit
The main advantage of trading using opposite Carlson Investments and 11 Bit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlson Investments position performs unexpectedly, 11 Bit 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 11 Bit will offset losses from the drop in 11 Bit's long position.| Carlson Investments vs. Centrum Finansowe Banku | Carlson Investments vs. Asseco Business Solutions | Carlson Investments vs. Detalion Games SA | Carlson Investments vs. Asseco South Eastern |
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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