Correlation Between CBrain AS and Dataproces Group
Can any of the company-specific risk be diversified away by investing in both CBrain AS and Dataproces Group 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 Dataproces Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between cBrain AS and Dataproces Group AS, you can compare the effects of market volatilities on CBrain AS and Dataproces Group 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 Dataproces Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBrain AS and Dataproces Group.
Diversification Opportunities for CBrain AS and Dataproces Group
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between CBrain and Dataproces is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding cBrain AS and Dataproces Group AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dataproces Group 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 Dataproces Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dataproces Group has no effect on the direction of CBrain AS i.e., CBrain AS and Dataproces Group go up and down completely randomly.
Pair Corralation between CBrain AS and Dataproces Group
Assuming the 90 days trading horizon cBrain AS is expected to under-perform the Dataproces Group. But the stock apears to be less risky and, when comparing its historical volatility, cBrain AS is 1.19 times less risky than Dataproces Group. The stock trades about -0.02 of its potential returns per unit of risk. The Dataproces Group AS is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 208.00 in Dataproces Group AS on November 3, 2024 and sell it today you would earn a total of 362.00 from holding Dataproces Group AS or generate 174.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
cBrain AS vs. Dataproces Group AS
Performance |
| Timeline |
| cBrain AS |
| Dataproces Group |
CBrain AS and Dataproces Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBrain AS and Dataproces Group
The main advantage of trading using opposite CBrain AS and Dataproces Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBrain AS position performs unexpectedly, Dataproces Group 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 Dataproces Group will offset losses from the drop in Dataproces Group's long position.| CBrain AS vs. ChemoMetec AS | CBrain AS vs. Ambu AS | CBrain AS vs. Genmab AS | CBrain AS vs. Zealand Pharma AS |
| Dataproces Group vs. Penneo AS | Dataproces Group vs. Bactiquant AS | Dataproces Group vs. cBrain AS | Dataproces Group vs. FOM Technologies 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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