Correlation Between Carlsberg and Nykredit Invest
Can any of the company-specific risk be diversified away by investing in both Carlsberg and Nykredit Invest 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 Nykredit Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlsberg AS and Nykredit Invest Korte, you can compare the effects of market volatilities on Carlsberg and Nykredit 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 Nykredit Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlsberg and Nykredit Invest.
Diversification Opportunities for Carlsberg and Nykredit Invest
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Carlsberg and Nykredit is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Carlsberg AS and Nykredit Invest Korte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nykredit Invest Korte 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 Nykredit Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nykredit Invest Korte has no effect on the direction of Carlsberg i.e., Carlsberg and Nykredit Invest go up and down completely randomly.
Pair Corralation between Carlsberg and Nykredit Invest
Assuming the 90 days trading horizon Carlsberg AS is expected to generate 14.74 times more return on investment than Nykredit Invest. However, Carlsberg is 14.74 times more volatile than Nykredit Invest Korte. It trades about 0.26 of its potential returns per unit of risk. Nykredit Invest Korte is currently generating about 0.08 per unit of risk. If you would invest 68,300 in Carlsberg AS on October 24, 2024 and sell it today you would earn a total of 3,840 from holding Carlsberg AS or generate 5.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlsberg AS vs. Nykredit Invest Korte
Performance |
| Timeline |
| Carlsberg AS |
| Nykredit Invest Korte |
Carlsberg and Nykredit Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlsberg and Nykredit Invest
The main advantage of trading using opposite Carlsberg and Nykredit Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlsberg position performs unexpectedly, Nykredit 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 Nykredit Invest will offset losses from the drop in Nykredit Invest's long position.| Carlsberg vs. Scandinavian Medical Solutions | Carlsberg vs. Ringkjoebing Landbobank AS | Carlsberg vs. Vestjysk Bank AS | Carlsberg vs. Prime Office AS |
| Nykredit Invest vs. Cessatech AS | Nykredit Invest vs. Ringkjoebing Landbobank AS | Nykredit Invest vs. Nordinvestments AS | Nykredit Invest vs. Carnegie Wealth Management |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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