Correlation Between Cambi ASA and Vow Green
Can any of the company-specific risk be diversified away by investing in both Cambi ASA and Vow Green 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 Vow Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cambi ASA and Vow Green Metals, you can compare the effects of market volatilities on Cambi ASA and Vow Green 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 Vow Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambi ASA and Vow Green.
Diversification Opportunities for Cambi ASA and Vow Green
Very good diversification
The 3 months correlation between Cambi and Vow is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Cambi ASA and Vow Green Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vow Green Metals 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 Vow Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vow Green Metals has no effect on the direction of Cambi ASA i.e., Cambi ASA and Vow Green go up and down completely randomly.
Pair Corralation between Cambi ASA and Vow Green
Assuming the 90 days trading horizon Cambi ASA is expected to generate 0.44 times more return on investment than Vow Green. However, Cambi ASA is 2.29 times less risky than Vow Green. It trades about -0.1 of its potential returns per unit of risk. Vow Green Metals is currently generating about -0.22 per unit of risk. If you would invest 1,825 in Cambi ASA on January 11, 2025 and sell it today you would lose (130.00) from holding Cambi ASA or give up 7.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cambi ASA vs. Vow Green Metals
Performance |
| Timeline |
| Cambi ASA |
| Vow Green Metals |
Cambi ASA and Vow Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cambi ASA and Vow Green
The main advantage of trading using opposite Cambi ASA and Vow Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambi ASA position performs unexpectedly, Vow Green 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 Vow Green will offset losses from the drop in Vow Green's long position.| Cambi ASA vs. Aker Horizons AS | Cambi ASA vs. Hexagon Purus As | Cambi ASA vs. Huddly AS | Cambi ASA vs. Agilyx 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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