Correlation Between Carlsberg and Matas AS
Can any of the company-specific risk be diversified away by investing in both Carlsberg and Matas AS 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 Matas AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlsberg AS and Matas AS, you can compare the effects of market volatilities on Carlsberg and Matas AS 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 Matas AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlsberg and Matas AS.
Diversification Opportunities for Carlsberg and Matas AS
Very good diversification
The 3 months correlation between Carlsberg and Matas is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Carlsberg AS and Matas AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matas 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 Matas AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matas AS has no effect on the direction of Carlsberg i.e., Carlsberg and Matas AS go up and down completely randomly.
Pair Corralation between Carlsberg and Matas AS
Assuming the 90 days trading horizon Carlsberg AS is expected to under-perform the Matas AS. But the stock apears to be less risky and, when comparing its historical volatility, Carlsberg AS is 1.35 times less risky than Matas AS. The stock trades about -0.03 of its potential returns per unit of risk. The Matas AS is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 8,197 in Matas AS on November 2, 2024 and sell it today you would earn a total of 5,603 from holding Matas AS or generate 68.35% 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. Matas AS
Performance |
| Timeline |
| Carlsberg AS |
| Matas AS |
Carlsberg and Matas AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlsberg and Matas AS
The main advantage of trading using opposite Carlsberg and Matas AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlsberg position performs unexpectedly, Matas AS 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 Matas AS will offset losses from the drop in Matas AS's long position.| Carlsberg vs. Scandinavian Investment Group | Carlsberg vs. Skjern Bank AS | Carlsberg vs. Danske Andelskassers Bank | Carlsberg vs. Sydbank 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
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |