Correlation Between CBrain AS and Nanologica
Can any of the company-specific risk be diversified away by investing in both CBrain AS and Nanologica 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 Nanologica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between cBrain AS and Nanologica AB, you can compare the effects of market volatilities on CBrain AS and Nanologica 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 Nanologica. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBrain AS and Nanologica.
Diversification Opportunities for CBrain AS and Nanologica
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between CBrain and Nanologica is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding cBrain AS and Nanologica AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanologica AB 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 Nanologica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanologica AB has no effect on the direction of CBrain AS i.e., CBrain AS and Nanologica go up and down completely randomly.
Pair Corralation between CBrain AS and Nanologica
Assuming the 90 days trading horizon cBrain AS is expected to generate 0.74 times more return on investment than Nanologica. However, cBrain AS is 1.35 times less risky than Nanologica. It trades about 0.03 of its potential returns per unit of risk. Nanologica AB is currently generating about -0.07 per unit of risk. If you would invest 16,575 in cBrain AS on August 31, 2024 and sell it today you would earn a total of 4,125 from holding cBrain AS or generate 24.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.17% |
| Values | Daily Returns |
cBrain AS vs. Nanologica AB
Performance |
| Timeline |
| cBrain AS |
| Nanologica AB |
CBrain AS and Nanologica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBrain AS and Nanologica
The main advantage of trading using opposite CBrain AS and Nanologica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBrain AS position performs unexpectedly, Nanologica 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 Nanologica will offset losses from the drop in Nanologica's long position.| CBrain AS vs. ChemoMetec AS | CBrain AS vs. Ambu AS | CBrain AS vs. Genmab AS | CBrain AS vs. Zealand Pharma AS |
| Nanologica vs. Senzime AB | Nanologica vs. C Rad AB | Nanologica vs. CellaVision AB | Nanologica vs. Episurf Medical AB |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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