Correlation Between Carlsberg and Hvidbjerg Bank
Can any of the company-specific risk be diversified away by investing in both Carlsberg and Hvidbjerg Bank 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 Hvidbjerg Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlsberg AS and Hvidbjerg Bank, you can compare the effects of market volatilities on Carlsberg and Hvidbjerg Bank 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 Hvidbjerg Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlsberg and Hvidbjerg Bank.
Diversification Opportunities for Carlsberg and Hvidbjerg Bank
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Carlsberg and Hvidbjerg is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Carlsberg AS and Hvidbjerg Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hvidbjerg Bank 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 Hvidbjerg Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hvidbjerg Bank has no effect on the direction of Carlsberg i.e., Carlsberg and Hvidbjerg Bank go up and down completely randomly.
Pair Corralation between Carlsberg and Hvidbjerg Bank
Assuming the 90 days trading horizon Carlsberg AS is expected to under-perform the Hvidbjerg Bank. In addition to that, Carlsberg is 1.33 times more volatile than Hvidbjerg Bank. It trades about -0.13 of its total potential returns per unit of risk. Hvidbjerg Bank is currently generating about 0.02 per unit of volatility. If you would invest 11,500 in Hvidbjerg Bank on September 3, 2024 and sell it today you would earn a total of 300.00 from holding Hvidbjerg Bank or generate 2.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlsberg AS vs. Hvidbjerg Bank
Performance |
| Timeline |
| Carlsberg AS |
| Hvidbjerg Bank |
Carlsberg and Hvidbjerg Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlsberg and Hvidbjerg Bank
The main advantage of trading using opposite Carlsberg and Hvidbjerg Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlsberg position performs unexpectedly, Hvidbjerg Bank 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 Hvidbjerg Bank will offset losses from the drop in Hvidbjerg Bank's long position.| Carlsberg vs. Hvidbjerg Bank | Carlsberg vs. Moens Bank AS | Carlsberg vs. Embla Medical hf | Carlsberg vs. Spar Nord Bank |
| Hvidbjerg Bank vs. FLSmidth Co | Hvidbjerg Bank vs. Danske Bank AS | Hvidbjerg Bank vs. ISS AS | Hvidbjerg Bank vs. DSV Panalpina 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Stocks Directory Find actively traded stocks across global markets |