Correlation Between CBrain AS and Agillic AS
Can any of the company-specific risk be diversified away by investing in both CBrain AS and Agillic 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 CBrain AS and Agillic AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between cBrain AS and Agillic AS, you can compare the effects of market volatilities on CBrain AS and Agillic 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 CBrain AS with a short position of Agillic AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBrain AS and Agillic AS.
Diversification Opportunities for CBrain AS and Agillic AS
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CBrain and Agillic is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding cBrain AS and Agillic AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agillic AS and CBrain AS 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 cBrain AS are associated (or correlated) with Agillic AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agillic AS has no effect on the direction of CBrain AS i.e., CBrain AS and Agillic AS go up and down completely randomly.
Pair Corralation between CBrain AS and Agillic AS
Assuming the 90 days trading horizon cBrain AS is expected to generate 1.28 times more return on investment than Agillic AS. However, CBrain AS is 1.28 times more volatile than Agillic AS. It trades about 0.03 of its potential returns per unit of risk. Agillic AS is currently generating about -0.07 per unit of risk. If you would invest 17,793 in cBrain AS on September 4, 2024 and sell it today you would earn a total of 3,257 from holding cBrain AS or generate 18.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
cBrain AS vs. Agillic AS
Performance |
| Timeline |
| cBrain AS |
| Agillic AS |
CBrain AS and Agillic AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBrain AS and Agillic AS
The main advantage of trading using opposite CBrain AS and Agillic AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBrain AS position performs unexpectedly, Agillic 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 Agillic AS will offset losses from the drop in Agillic AS's long position.| CBrain AS vs. ChemoMetec AS | CBrain AS vs. Ambu AS | CBrain AS vs. Genmab AS | CBrain AS vs. Zealand Pharma AS |
| Agillic AS vs. Alefarm Brewing AS | Agillic AS vs. Embla Medical hf | Agillic AS vs. Vestjysk Bank AS | Agillic AS vs. Groenlandsbanken 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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