Correlation Between Carlsberg and ChemoMetec
Can any of the company-specific risk be diversified away by investing in both Carlsberg and ChemoMetec 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 ChemoMetec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlsberg AS and ChemoMetec AS, you can compare the effects of market volatilities on Carlsberg and ChemoMetec 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 ChemoMetec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlsberg and ChemoMetec.
Diversification Opportunities for Carlsberg and ChemoMetec
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Carlsberg and ChemoMetec is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Carlsberg AS and ChemoMetec AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChemoMetec AS 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 ChemoMetec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChemoMetec AS has no effect on the direction of Carlsberg i.e., Carlsberg and ChemoMetec go up and down completely randomly.
Pair Corralation between Carlsberg and ChemoMetec
Assuming the 90 days trading horizon Carlsberg AS is expected to under-perform the ChemoMetec. But the stock apears to be less risky and, when comparing its historical volatility, Carlsberg AS is 2.36 times less risky than ChemoMetec. The stock trades about -0.09 of its potential returns per unit of risk. The ChemoMetec AS is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 30,020 in ChemoMetec AS on September 3, 2024 and sell it today you would earn a total of 17,340 from holding ChemoMetec AS or generate 57.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlsberg AS vs. ChemoMetec AS
Performance |
| Timeline |
| Carlsberg AS |
| ChemoMetec AS |
Carlsberg and ChemoMetec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlsberg and ChemoMetec
The main advantage of trading using opposite Carlsberg and ChemoMetec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlsberg position performs unexpectedly, ChemoMetec 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 ChemoMetec will offset losses from the drop in ChemoMetec's long position.| Carlsberg vs. Hvidbjerg Bank | Carlsberg vs. Moens Bank AS | Carlsberg vs. Embla Medical hf | Carlsberg vs. Spar Nord Bank |
| ChemoMetec vs. cBrain AS | ChemoMetec vs. Ambu AS | ChemoMetec vs. Genmab AS | ChemoMetec vs. Zealand Pharma 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |