Correlation Between Carlsberg and LED IBond
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By analyzing existing cross correlation between Carlsberg AS and LED iBond International, you can compare the effects of market volatilities on Carlsberg and LED IBond 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 LED IBond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlsberg and LED IBond.
Diversification Opportunities for Carlsberg and LED IBond
Very good diversification
The 3 months correlation between Carlsberg and LED is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Carlsberg AS and LED iBond International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LED iBond International 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 LED IBond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LED iBond International has no effect on the direction of Carlsberg i.e., Carlsberg and LED IBond go up and down completely randomly.
Pair Corralation between Carlsberg and LED IBond
Assuming the 90 days trading horizon Carlsberg AS is expected to generate 0.45 times more return on investment than LED IBond. However, Carlsberg AS is 2.23 times less risky than LED IBond. It trades about 0.43 of its potential returns per unit of risk. LED iBond International is currently generating about -0.16 per unit of risk. If you would invest 73,540 in Carlsberg AS on November 27, 2024 and sell it today you would earn a total of 15,100 from holding Carlsberg AS or generate 20.53% 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. LED iBond International
Performance |
| Timeline |
| Carlsberg AS |
| LED iBond International |
Carlsberg and LED IBond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlsberg and LED IBond
The main advantage of trading using opposite Carlsberg and LED IBond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlsberg position performs unexpectedly, LED IBond 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 LED IBond will offset losses from the drop in LED IBond's long position.| Carlsberg vs. Kreditbanken AS | Carlsberg vs. Dataproces Group AS | Carlsberg vs. Laan Spar Bank | Carlsberg vs. Nordfyns Bank AS |
| LED IBond vs. Scandinavian Medical Solutions | LED IBond vs. Prime Office AS | LED IBond vs. Nordinvestments AS | LED IBond vs. Djurslands Bank |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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