Correlation Between CBrain AS and BankInvest Optima
Can any of the company-specific risk be diversified away by investing in both CBrain AS and BankInvest Optima 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 BankInvest Optima into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between cBrain AS and BankInvest Optima 30, you can compare the effects of market volatilities on CBrain AS and BankInvest Optima 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 BankInvest Optima. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBrain AS and BankInvest Optima.
Diversification Opportunities for CBrain AS and BankInvest Optima
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CBrain and BankInvest is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding cBrain AS and BankInvest Optima 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInvest Optima 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 BankInvest Optima. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInvest Optima has no effect on the direction of CBrain AS i.e., CBrain AS and BankInvest Optima go up and down completely randomly.
Pair Corralation between CBrain AS and BankInvest Optima
Assuming the 90 days trading horizon cBrain AS is expected to generate 8.05 times more return on investment than BankInvest Optima. However, CBrain AS is 8.05 times more volatile than BankInvest Optima 30. It trades about 0.02 of its potential returns per unit of risk. BankInvest Optima 30 is currently generating about 0.15 per unit of risk. If you would invest 19,860 in cBrain AS on September 1, 2024 and sell it today you would earn a total of 940.00 from holding cBrain AS or generate 4.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
cBrain AS vs. BankInvest Optima 30
Performance |
| Timeline |
| cBrain AS |
| BankInvest Optima |
CBrain AS and BankInvest Optima Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBrain AS and BankInvest Optima
The main advantage of trading using opposite CBrain AS and BankInvest Optima positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBrain AS position performs unexpectedly, BankInvest Optima 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 BankInvest Optima will offset losses from the drop in BankInvest Optima's long position.| CBrain AS vs. ChemoMetec AS | CBrain AS vs. Ambu AS | CBrain AS vs. Genmab AS | CBrain AS vs. Zealand Pharma AS |
| BankInvest Optima vs. Novo Nordisk AS | BankInvest Optima vs. Nordea Bank Abp | BankInvest Optima vs. DSV Panalpina AS | BankInvest Optima vs. AP Mller |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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