Correlation Between CBrain AS and Fluoguide
Can any of the company-specific risk be diversified away by investing in both CBrain AS and Fluoguide 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 Fluoguide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between cBrain AS and Fluoguide AS, you can compare the effects of market volatilities on CBrain AS and Fluoguide 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 Fluoguide. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBrain AS and Fluoguide.
Diversification Opportunities for CBrain AS and Fluoguide
Very good diversification
The 3 months correlation between CBrain and Fluoguide is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding cBrain AS and Fluoguide AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluoguide 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 Fluoguide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluoguide AS has no effect on the direction of CBrain AS i.e., CBrain AS and Fluoguide go up and down completely randomly.
Pair Corralation between CBrain AS and Fluoguide
Assuming the 90 days trading horizon CBrain AS is expected to generate 9.11 times less return on investment than Fluoguide. But when comparing it to its historical volatility, cBrain AS is 2.53 times less risky than Fluoguide. It trades about 0.05 of its potential returns per unit of risk. Fluoguide AS is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 4,080 in Fluoguide AS on November 3, 2024 and sell it today you would earn a total of 930.00 from holding Fluoguide AS or generate 22.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
cBrain AS vs. Fluoguide AS
Performance |
| Timeline |
| cBrain AS |
| Fluoguide AS |
CBrain AS and Fluoguide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBrain AS and Fluoguide
The main advantage of trading using opposite CBrain AS and Fluoguide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBrain AS position performs unexpectedly, Fluoguide 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 Fluoguide will offset losses from the drop in Fluoguide's long position.| CBrain AS vs. ChemoMetec AS | CBrain AS vs. Ambu AS | CBrain AS vs. Genmab AS | CBrain AS vs. Zealand Pharma AS |
| Fluoguide vs. ExpreS2ion Biotech Holding | Fluoguide vs. Hansa Biopharma AB | Fluoguide vs. cBrain AS | Fluoguide vs. BioPorto |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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