Correlation Between CBrain AS and Maj Invest
Can any of the company-specific risk be diversified away by investing in both CBrain AS and Maj Invest 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 Maj Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between cBrain AS and Maj Invest Emerging, you can compare the effects of market volatilities on CBrain AS and Maj Invest 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 Maj Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBrain AS and Maj Invest.
Diversification Opportunities for CBrain AS and Maj Invest
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CBrain and Maj is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding cBrain AS and Maj Invest Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maj Invest Emerging 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 Maj Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maj Invest Emerging has no effect on the direction of CBrain AS i.e., CBrain AS and Maj Invest go up and down completely randomly.
Pair Corralation between CBrain AS and Maj Invest
Assuming the 90 days trading horizon cBrain AS is expected to under-perform the Maj Invest. In addition to that, CBrain AS is 2.13 times more volatile than Maj Invest Emerging. It trades about -0.08 of its total potential returns per unit of risk. Maj Invest Emerging is currently generating about 0.05 per unit of volatility. If you would invest 11,060 in Maj Invest Emerging on September 5, 2024 and sell it today you would earn a total of 795.00 from holding Maj Invest Emerging or generate 7.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.22% |
| Values | Daily Returns |
cBrain AS vs. Maj Invest Emerging
Performance |
| Timeline |
| cBrain AS |
| Maj Invest Emerging |
CBrain AS and Maj Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBrain AS and Maj Invest
The main advantage of trading using opposite CBrain AS and Maj Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBrain AS position performs unexpectedly, Maj Invest 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 Maj Invest will offset losses from the drop in Maj Invest's long position.| CBrain AS vs. ChemoMetec AS | CBrain AS vs. Ambu AS | CBrain AS vs. Genmab AS | CBrain AS vs. Zealand Pharma AS |
| Maj Invest vs. Bavarian Nordic | Maj Invest vs. Investeringsselskabet Luxor AS | Maj Invest vs. cBrain AS | Maj Invest vs. Fast Ejendom |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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