Correlation Between CBrain AS and LED IBond
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By analyzing existing cross correlation between cBrain AS and LED iBond International, you can compare the effects of market volatilities on CBrain AS and LED IBond 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 LED IBond. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBrain AS and LED IBond.
Diversification Opportunities for CBrain AS and LED IBond
Average diversification
The 3 months correlation between CBrain and LED is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding cBrain AS and LED iBond International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LED iBond International 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 LED IBond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LED iBond International has no effect on the direction of CBrain AS i.e., CBrain AS and LED IBond go up and down completely randomly.
Pair Corralation between CBrain AS and LED IBond
Assuming the 90 days trading horizon CBrain AS is expected to generate 8.36 times less return on investment than LED IBond. But when comparing it to its historical volatility, cBrain AS is 3.68 times less risky than LED IBond. It trades about 0.02 of its potential returns per unit of risk. LED iBond International is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 38.00 in LED iBond International on September 1, 2024 and sell it today you would earn a total of 0.00 from holding LED iBond International or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
cBrain AS vs. LED iBond International
Performance |
| Timeline |
| cBrain AS |
| LED iBond International |
CBrain AS and LED IBond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBrain AS and LED IBond
The main advantage of trading using opposite CBrain AS and LED IBond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBrain AS position performs unexpectedly, LED IBond 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 LED IBond will offset losses from the drop in LED IBond's long position.| CBrain AS vs. ChemoMetec AS | CBrain AS vs. Ambu AS | CBrain AS vs. Genmab AS | CBrain AS vs. Zealand Pharma AS |
| LED IBond vs. Danske Invest | LED IBond vs. Gabriel Holding | LED IBond vs. Maj Invest Glob | LED IBond vs. Danske Invest Euro |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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