Correlation Between CBrain AS and PARKEN Sport
Can any of the company-specific risk be diversified away by investing in both CBrain AS and PARKEN Sport 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 PARKEN Sport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between cBrain AS and PARKEN Sport Entertainment, you can compare the effects of market volatilities on CBrain AS and PARKEN Sport 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 PARKEN Sport. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBrain AS and PARKEN Sport.
Diversification Opportunities for CBrain AS and PARKEN Sport
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between CBrain and PARKEN is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding cBrain AS and PARKEN Sport Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PARKEN Sport Enterta 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 PARKEN Sport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PARKEN Sport Enterta has no effect on the direction of CBrain AS i.e., CBrain AS and PARKEN Sport go up and down completely randomly.
Pair Corralation between CBrain AS and PARKEN Sport
Assuming the 90 days trading horizon cBrain AS is expected to under-perform the PARKEN Sport. In addition to that, CBrain AS is 1.45 times more volatile than PARKEN Sport Entertainment. It trades about -0.07 of its total potential returns per unit of risk. PARKEN Sport Entertainment is currently generating about 0.01 per unit of volatility. If you would invest 12,150 in PARKEN Sport Entertainment on September 1, 2024 and sell it today you would earn a total of 50.00 from holding PARKEN Sport Entertainment or generate 0.41% 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. PARKEN Sport Entertainment
Performance |
| Timeline |
| cBrain AS |
| PARKEN Sport Enterta |
CBrain AS and PARKEN Sport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBrain AS and PARKEN Sport
The main advantage of trading using opposite CBrain AS and PARKEN Sport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBrain AS position performs unexpectedly, PARKEN Sport 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 PARKEN Sport will offset losses from the drop in PARKEN Sport's long position.| CBrain AS vs. ChemoMetec AS | CBrain AS vs. Ambu AS | CBrain AS vs. Genmab AS | CBrain AS vs. Zealand Pharma AS |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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