Correlation Between CBrain AS and Cantargia
Can any of the company-specific risk be diversified away by investing in both CBrain AS and Cantargia 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 Cantargia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between cBrain AS and Cantargia AB, you can compare the effects of market volatilities on CBrain AS and Cantargia 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 Cantargia. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBrain AS and Cantargia.
Diversification Opportunities for CBrain AS and Cantargia
Good diversification
The 3 months correlation between CBrain and Cantargia is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding cBrain AS and Cantargia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cantargia AB 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 Cantargia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cantargia AB has no effect on the direction of CBrain AS i.e., CBrain AS and Cantargia go up and down completely randomly.
Pair Corralation between CBrain AS and Cantargia
Assuming the 90 days trading horizon cBrain AS is expected to generate 0.5 times more return on investment than Cantargia. However, cBrain AS is 2.02 times less risky than Cantargia. It trades about -0.01 of its potential returns per unit of risk. Cantargia AB is currently generating about -0.23 per unit of risk. If you would invest 20,100 in cBrain AS on August 24, 2024 and sell it today you would lose (420.00) from holding cBrain AS or give up 2.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
cBrain AS vs. Cantargia AB
Performance |
| Timeline |
| cBrain AS |
| Cantargia AB |
CBrain AS and Cantargia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBrain AS and Cantargia
The main advantage of trading using opposite CBrain AS and Cantargia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBrain AS position performs unexpectedly, Cantargia 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 Cantargia will offset losses from the drop in Cantargia's long position.| CBrain AS vs. ChemoMetec AS | CBrain AS vs. Ambu AS | CBrain AS vs. Genmab AS | CBrain AS vs. Zealand Pharma 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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