Correlation Between CBrain AS and Matas AS
Can any of the company-specific risk be diversified away by investing in both CBrain AS and Matas AS 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 Matas AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between cBrain AS and Matas AS, you can compare the effects of market volatilities on CBrain AS and Matas AS 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 Matas AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBrain AS and Matas AS.
Diversification Opportunities for CBrain AS and Matas AS
Good diversification
The 3 months correlation between CBrain and Matas is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding cBrain AS and Matas AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matas 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 Matas AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matas AS has no effect on the direction of CBrain AS i.e., CBrain AS and Matas AS go up and down completely randomly.
Pair Corralation between CBrain AS and Matas AS
Assuming the 90 days trading horizon cBrain AS is expected to generate 1.93 times more return on investment than Matas AS. However, CBrain AS is 1.93 times more volatile than Matas AS. It trades about 0.07 of its potential returns per unit of risk. Matas AS is currently generating about 0.01 per unit of risk. If you would invest 19,120 in cBrain AS on August 29, 2024 and sell it today you would earn a total of 880.00 from holding cBrain AS or generate 4.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
cBrain AS vs. Matas AS
Performance |
| Timeline |
| cBrain AS |
| Matas AS |
CBrain AS and Matas AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBrain AS and Matas AS
The main advantage of trading using opposite CBrain AS and Matas AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBrain AS position performs unexpectedly, Matas AS 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 Matas AS will offset losses from the drop in Matas AS's long position.| CBrain AS vs. ChemoMetec AS | CBrain AS vs. Ambu AS | CBrain AS vs. Genmab AS | CBrain AS vs. Zealand Pharma 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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