Correlation Between CBrain AS and Columbus
Can any of the company-specific risk be diversified away by investing in both CBrain AS and Columbus 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 Columbus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between cBrain AS and Columbus AS, you can compare the effects of market volatilities on CBrain AS and Columbus 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 Columbus. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBrain AS and Columbus.
Diversification Opportunities for CBrain AS and Columbus
Pay attention - limited upside
The 3 months correlation between CBrain and Columbus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding cBrain AS and Columbus AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbus 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 Columbus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbus AS has no effect on the direction of CBrain AS i.e., CBrain AS and Columbus go up and down completely randomly.
Pair Corralation between CBrain AS and Columbus
Assuming the 90 days trading horizon CBrain AS is expected to generate 1.03 times less return on investment than Columbus. In addition to that, CBrain AS is 1.84 times more volatile than Columbus AS. It trades about 0.04 of its total potential returns per unit of risk. Columbus AS is currently generating about 0.08 per unit of volatility. If you would invest 633.00 in Columbus AS on August 25, 2024 and sell it today you would earn a total of 427.00 from holding Columbus AS or generate 67.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
cBrain AS vs. Columbus AS
Performance |
| Timeline |
| cBrain AS |
| Columbus AS |
CBrain AS and Columbus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBrain AS and Columbus
The main advantage of trading using opposite CBrain AS and Columbus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBrain AS position performs unexpectedly, Columbus 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 Columbus will offset losses from the drop in Columbus' 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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