Correlation Between Carlsberg and Nordea Invest
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By analyzing existing cross correlation between Carlsberg AS and Nordea Invest Danske, you can compare the effects of market volatilities on Carlsberg and Nordea Invest 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 Nordea Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlsberg and Nordea Invest.
Diversification Opportunities for Carlsberg and Nordea Invest
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Carlsberg and Nordea is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Carlsberg AS and Nordea Invest Danske in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Danske 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 Nordea Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Invest Danske has no effect on the direction of Carlsberg i.e., Carlsberg and Nordea Invest go up and down completely randomly.
Pair Corralation between Carlsberg and Nordea Invest
Assuming the 90 days trading horizon Carlsberg AS is expected to under-perform the Nordea Invest. In addition to that, Carlsberg is 2.55 times more volatile than Nordea Invest Danske. It trades about -0.08 of its total potential returns per unit of risk. Nordea Invest Danske is currently generating about 0.09 per unit of volatility. If you would invest 17,980 in Nordea Invest Danske on September 19, 2024 and sell it today you would earn a total of 225.00 from holding Nordea Invest Danske or generate 1.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlsberg AS vs. Nordea Invest Danske
Performance |
| Timeline |
| Carlsberg AS |
| Nordea Invest Danske |
Carlsberg and Nordea Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlsberg and Nordea Invest
The main advantage of trading using opposite Carlsberg and Nordea Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlsberg position performs unexpectedly, Nordea Invest 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 Nordea Invest will offset losses from the drop in Nordea Invest's long position.| Carlsberg vs. Dataproces Group AS | Carlsberg vs. Fynske Bank AS | Carlsberg vs. Danske Andelskassers Bank | Carlsberg vs. PARKEN Sport Entertainment |
| Nordea Invest vs. North Media AS | Nordea Invest vs. PARKEN Sport Entertainment | Nordea Invest vs. Nordfyns Bank AS | Nordea Invest vs. TROPHY GAMES Development |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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