Correlation Between CBrain AS and Broendbyernes
Can any of the company-specific risk be diversified away by investing in both CBrain AS and Broendbyernes 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 Broendbyernes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between cBrain AS and Broendbyernes IF Fodbold, you can compare the effects of market volatilities on CBrain AS and Broendbyernes 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 Broendbyernes. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBrain AS and Broendbyernes.
Diversification Opportunities for CBrain AS and Broendbyernes
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between CBrain and Broendbyernes is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding cBrain AS and Broendbyernes IF Fodbold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Broendbyernes IF Fodbold 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 Broendbyernes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Broendbyernes IF Fodbold has no effect on the direction of CBrain AS i.e., CBrain AS and Broendbyernes go up and down completely randomly.
Pair Corralation between CBrain AS and Broendbyernes
Assuming the 90 days trading horizon cBrain AS is expected to generate 1.19 times more return on investment than Broendbyernes. However, CBrain AS is 1.19 times more volatile than Broendbyernes IF Fodbold. It trades about 0.04 of its potential returns per unit of risk. Broendbyernes IF Fodbold is currently generating about 0.02 per unit of risk. If you would invest 14,940 in cBrain AS on August 29, 2024 and sell it today you would earn a total of 4,980 from holding cBrain AS or generate 33.33% 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. Broendbyernes IF Fodbold
Performance |
| Timeline |
| cBrain AS |
| Broendbyernes IF Fodbold |
CBrain AS and Broendbyernes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBrain AS and Broendbyernes
The main advantage of trading using opposite CBrain AS and Broendbyernes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBrain AS position performs unexpectedly, Broendbyernes 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 Broendbyernes will offset losses from the drop in Broendbyernes' long position.| CBrain AS vs. ChemoMetec AS | CBrain AS vs. Ambu AS | CBrain AS vs. Genmab AS | CBrain AS vs. Zealand Pharma AS |
| Broendbyernes vs. PARKEN Sport Entertainment | Broendbyernes vs. Bang Olufsen | Broendbyernes vs. BioPorto | Broendbyernes vs. cBrain 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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