Correlation Between CBrain AS and HusCompagniet
Can any of the company-specific risk be diversified away by investing in both CBrain AS and HusCompagniet 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 HusCompagniet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between cBrain AS and HusCompagniet AS, you can compare the effects of market volatilities on CBrain AS and HusCompagniet 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 HusCompagniet. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBrain AS and HusCompagniet.
Diversification Opportunities for CBrain AS and HusCompagniet
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between CBrain and HusCompagniet is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding cBrain AS and HusCompagniet AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HusCompagniet 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 HusCompagniet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HusCompagniet AS has no effect on the direction of CBrain AS i.e., CBrain AS and HusCompagniet go up and down completely randomly.
Pair Corralation between CBrain AS and HusCompagniet
Assuming the 90 days trading horizon cBrain AS is expected to under-perform the HusCompagniet. In addition to that, CBrain AS is 1.41 times more volatile than HusCompagniet AS. It trades about -0.08 of its total potential returns per unit of risk. HusCompagniet AS is currently generating about 0.08 per unit of volatility. If you would invest 4,365 in HusCompagniet AS on August 25, 2024 and sell it today you would earn a total of 1,315 from holding HusCompagniet AS or generate 30.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
cBrain AS vs. HusCompagniet AS
Performance |
| Timeline |
| cBrain AS |
| HusCompagniet AS |
CBrain AS and HusCompagniet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBrain AS and HusCompagniet
The main advantage of trading using opposite CBrain AS and HusCompagniet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBrain AS position performs unexpectedly, HusCompagniet 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 HusCompagniet will offset losses from the drop in HusCompagniet's long position.| CBrain AS vs. ChemoMetec AS | CBrain AS vs. Ambu AS | CBrain AS vs. Genmab AS | CBrain AS vs. Zealand Pharma AS |
| HusCompagniet vs. Matas AS | HusCompagniet vs. Netcompany Group AS | HusCompagniet vs. FLSmidth Co | HusCompagniet vs. GN Store Nord |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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