Correlation Between Carlsberg and Investin Optimal
Can any of the company-specific risk be diversified away by investing in both Carlsberg and Investin Optimal 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 Investin Optimal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlsberg AS and Investin Optimal Stabil, you can compare the effects of market volatilities on Carlsberg and Investin Optimal 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 Investin Optimal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlsberg and Investin Optimal.
Diversification Opportunities for Carlsberg and Investin Optimal
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Carlsberg and Investin is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Carlsberg AS and Investin Optimal Stabil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investin Optimal Stabil 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 Investin Optimal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investin Optimal Stabil has no effect on the direction of Carlsberg i.e., Carlsberg and Investin Optimal go up and down completely randomly.
Pair Corralation between Carlsberg and Investin Optimal
Assuming the 90 days trading horizon Carlsberg AS is expected to generate 4.55 times more return on investment than Investin Optimal. However, Carlsberg is 4.55 times more volatile than Investin Optimal Stabil. It trades about 0.3 of its potential returns per unit of risk. Investin Optimal Stabil is currently generating about 0.14 per unit of risk. If you would invest 69,000 in Carlsberg AS on October 29, 2024 and sell it today you would earn a total of 4,080 from holding Carlsberg AS or generate 5.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlsberg AS vs. Investin Optimal Stabil
Performance |
| Timeline |
| Carlsberg AS |
| Investin Optimal Stabil |
Carlsberg and Investin Optimal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlsberg and Investin Optimal
The main advantage of trading using opposite Carlsberg and Investin Optimal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlsberg position performs unexpectedly, Investin Optimal 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 Investin Optimal will offset losses from the drop in Investin Optimal's long position.| Carlsberg vs. Formuepleje Mix Medium | Carlsberg vs. Ringkjoebing Landbobank AS | Carlsberg vs. Fynske Bank AS | Carlsberg vs. Strategic Investments AS |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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