Correlation Between CBrain AS and GN Store
Can any of the company-specific risk be diversified away by investing in both CBrain AS and GN Store 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 GN Store into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between cBrain AS and GN Store Nord, you can compare the effects of market volatilities on CBrain AS and GN Store 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 GN Store. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBrain AS and GN Store.
Diversification Opportunities for CBrain AS and GN Store
Modest diversification
The 3 months correlation between CBrain and GN Store is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding cBrain AS and GN Store Nord in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GN Store Nord 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 GN Store. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GN Store Nord has no effect on the direction of CBrain AS i.e., CBrain AS and GN Store go up and down completely randomly.
Pair Corralation between CBrain AS and GN Store
Assuming the 90 days trading horizon cBrain AS is expected to under-perform the GN Store. But the stock apears to be less risky and, when comparing its historical volatility, cBrain AS is 1.03 times less risky than GN Store. The stock trades about -0.15 of its potential returns per unit of risk. The GN Store Nord is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 13,140 in GN Store Nord on September 19, 2024 and sell it today you would lose (520.00) from holding GN Store Nord or give up 3.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
cBrain AS vs. GN Store Nord
Performance |
| Timeline |
| cBrain AS |
| GN Store Nord |
CBrain AS and GN Store Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBrain AS and GN Store
The main advantage of trading using opposite CBrain AS and GN Store positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBrain AS position performs unexpectedly, GN Store 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 GN Store will offset losses from the drop in GN Store's long position.| CBrain AS vs. ChemoMetec AS | CBrain AS vs. Ambu AS | CBrain AS vs. Genmab AS | CBrain AS vs. Zealand Pharma AS |
| GN Store vs. Dataproces Group AS | GN Store vs. cBrain AS | GN Store vs. Nilfisk Holding AS | GN Store vs. Danish Aerospace |
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 CEOs Directory module to screen CEOs from public companies around the world.
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