Correlation Between Cambi ASA and Pexip Holding
Can any of the company-specific risk be diversified away by investing in both Cambi ASA and Pexip Holding 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 Cambi ASA and Pexip Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cambi ASA and Pexip Holding ASA, you can compare the effects of market volatilities on Cambi ASA and Pexip Holding 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 Cambi ASA with a short position of Pexip Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambi ASA and Pexip Holding.
Diversification Opportunities for Cambi ASA and Pexip Holding
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cambi and Pexip is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Cambi ASA and Pexip Holding ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pexip Holding ASA and Cambi 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 Cambi ASA are associated (or correlated) with Pexip Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pexip Holding ASA has no effect on the direction of Cambi ASA i.e., Cambi ASA and Pexip Holding go up and down completely randomly.
Pair Corralation between Cambi ASA and Pexip Holding
Assuming the 90 days trading horizon Cambi ASA is expected to generate 1.1 times less return on investment than Pexip Holding. In addition to that, Cambi ASA is 1.09 times more volatile than Pexip Holding ASA. It trades about 0.08 of its total potential returns per unit of risk. Pexip Holding ASA is currently generating about 0.1 per unit of volatility. If you would invest 1,258 in Pexip Holding ASA on September 13, 2024 and sell it today you would earn a total of 3,312 from holding Pexip Holding ASA or generate 263.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cambi ASA vs. Pexip Holding ASA
Performance |
| Timeline |
| Cambi ASA |
| Pexip Holding ASA |
Cambi ASA and Pexip Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cambi ASA and Pexip Holding
The main advantage of trading using opposite Cambi ASA and Pexip Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambi ASA position performs unexpectedly, Pexip Holding 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 Pexip Holding will offset losses from the drop in Pexip Holding's long position.| Cambi ASA vs. Aker Horizons AS | Cambi ASA vs. Hexagon Purus As | Cambi ASA vs. Huddly AS | Cambi ASA vs. Everfuel AS |
| Pexip Holding vs. Huddlestock Fintech As | Pexip Holding vs. Kongsberg Gruppen ASA | Pexip Holding vs. Napatech AS | Pexip Holding vs. Elkem ASA |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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