Correlation Between CBrain AS and Cyxone AB
Can any of the company-specific risk be diversified away by investing in both CBrain AS and Cyxone AB 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 Cyxone AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between cBrain AS and Cyxone AB, you can compare the effects of market volatilities on CBrain AS and Cyxone AB 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 Cyxone AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBrain AS and Cyxone AB.
Diversification Opportunities for CBrain AS and Cyxone AB
Significant diversification
The 3 months correlation between CBrain and Cyxone is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding cBrain AS and Cyxone AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cyxone 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 Cyxone AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cyxone AB has no effect on the direction of CBrain AS i.e., CBrain AS and Cyxone AB go up and down completely randomly.
Pair Corralation between CBrain AS and Cyxone AB
Assuming the 90 days trading horizon cBrain AS is expected to generate 0.41 times more return on investment than Cyxone AB. However, cBrain AS is 2.45 times less risky than Cyxone AB. It trades about 0.02 of its potential returns per unit of risk. Cyxone AB is currently generating about -0.04 per unit of risk. If you would invest 18,302 in cBrain AS on August 26, 2024 and sell it today you would earn a total of 1,998 from holding cBrain AS or generate 10.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
cBrain AS vs. Cyxone AB
Performance |
| Timeline |
| cBrain AS |
| Cyxone AB |
CBrain AS and Cyxone AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBrain AS and Cyxone AB
The main advantage of trading using opposite CBrain AS and Cyxone AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBrain AS position performs unexpectedly, Cyxone AB 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 Cyxone AB will offset losses from the drop in Cyxone AB'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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |