Correlation Between Carlsberg and BankIn Bredygt
Can any of the company-specific risk be diversified away by investing in both Carlsberg and BankIn Bredygt 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 Carlsberg and BankIn Bredygt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlsberg AS and BankIn Bredygt Klimaakt, you can compare the effects of market volatilities on Carlsberg and BankIn Bredygt 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 Carlsberg with a short position of BankIn Bredygt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlsberg and BankIn Bredygt.
Diversification Opportunities for Carlsberg and BankIn Bredygt
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Carlsberg and BankIn is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Carlsberg AS and BankIn Bredygt Klimaakt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankIn Bredygt Klimaakt and Carlsberg 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 Carlsberg AS are associated (or correlated) with BankIn Bredygt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankIn Bredygt Klimaakt has no effect on the direction of Carlsberg i.e., Carlsberg and BankIn Bredygt go up and down completely randomly.
Pair Corralation between Carlsberg and BankIn Bredygt
Assuming the 90 days trading horizon Carlsberg AS is expected to under-perform the BankIn Bredygt. In addition to that, Carlsberg is 1.09 times more volatile than BankIn Bredygt Klimaakt. It trades about -0.03 of its total potential returns per unit of risk. BankIn Bredygt Klimaakt is currently generating about 0.04 per unit of volatility. If you would invest 10,080 in BankIn Bredygt Klimaakt on August 25, 2024 and sell it today you would earn a total of 690.00 from holding BankIn Bredygt Klimaakt or generate 6.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 58.08% |
| Values | Daily Returns |
Carlsberg AS vs. BankIn Bredygt Klimaakt
Performance |
| Timeline |
| Carlsberg AS |
| BankIn Bredygt Klimaakt |
Carlsberg and BankIn Bredygt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlsberg and BankIn Bredygt
The main advantage of trading using opposite Carlsberg and BankIn Bredygt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlsberg position performs unexpectedly, BankIn Bredygt 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 BankIn Bredygt will offset losses from the drop in BankIn Bredygt's long position.| Carlsberg vs. Formuepleje Mix Medium | Carlsberg vs. Fynske Bank AS | Carlsberg vs. Moens Bank AS | Carlsberg vs. BankInv GloAkColum Threadndl |
| BankIn Bredygt vs. MapsPeople AS | BankIn Bredygt vs. Penneo AS | BankIn Bredygt vs. Dataproces Group AS | BankIn Bredygt vs. Orderyoyo 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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