Correlation Between CBrain AS and Konsolidator
Can any of the company-specific risk be diversified away by investing in both CBrain AS and Konsolidator 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 Konsolidator into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between cBrain AS and Konsolidator AS, you can compare the effects of market volatilities on CBrain AS and Konsolidator 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 Konsolidator. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBrain AS and Konsolidator.
Diversification Opportunities for CBrain AS and Konsolidator
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CBrain and Konsolidator is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding cBrain AS and Konsolidator AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konsolidator 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 Konsolidator. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konsolidator AS has no effect on the direction of CBrain AS i.e., CBrain AS and Konsolidator go up and down completely randomly.
Pair Corralation between CBrain AS and Konsolidator
Assuming the 90 days trading horizon CBrain AS is expected to generate 3.91 times less return on investment than Konsolidator. But when comparing it to its historical volatility, cBrain AS is 1.21 times less risky than Konsolidator. It trades about 0.01 of its potential returns per unit of risk. Konsolidator AS is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 372.00 in Konsolidator AS on August 29, 2024 and sell it today you would earn a total of 8.00 from holding Konsolidator AS or generate 2.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
cBrain AS vs. Konsolidator AS
Performance |
| Timeline |
| cBrain AS |
| Konsolidator AS |
CBrain AS and Konsolidator Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBrain AS and Konsolidator
The main advantage of trading using opposite CBrain AS and Konsolidator positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBrain AS position performs unexpectedly, Konsolidator 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 Konsolidator will offset losses from the drop in Konsolidator's long position.| CBrain AS vs. ChemoMetec AS | CBrain AS vs. Ambu AS | CBrain AS vs. Genmab AS | CBrain AS vs. Zealand Pharma AS |
| Konsolidator vs. Strategic Investments AS | Konsolidator vs. Laan Spar Bank | Konsolidator vs. Cessatech AS | Konsolidator vs. Prime Office 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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