Correlation Between CBrain AS and PFA Invest
Can any of the company-specific risk be diversified away by investing in both CBrain AS and PFA 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 PFA 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 PFA Invest Kreditobligationer, you can compare the effects of market volatilities on CBrain AS and PFA 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 PFA Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBrain AS and PFA Invest.
Diversification Opportunities for CBrain AS and PFA Invest
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between CBrain and PFA is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding cBrain AS and PFA Invest Kreditobligationer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PFA Invest Kreditobl 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 PFA Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PFA Invest Kreditobl has no effect on the direction of CBrain AS i.e., CBrain AS and PFA Invest go up and down completely randomly.
Pair Corralation between CBrain AS and PFA Invest
Assuming the 90 days trading horizon cBrain AS is expected to generate 12.77 times more return on investment than PFA Invest. However, CBrain AS is 12.77 times more volatile than PFA Invest Kreditobligationer. It trades about 0.03 of its potential returns per unit of risk. PFA Invest Kreditobligationer is currently generating about 0.09 per unit of risk. If you would invest 15,975 in cBrain AS on October 30, 2024 and sell it today you would earn a total of 3,625 from holding cBrain AS or generate 22.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
cBrain AS vs. PFA Invest Kreditobligationer
Performance |
| Timeline |
| cBrain AS |
| PFA Invest Kreditobl |
CBrain AS and PFA Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBrain AS and PFA Invest
The main advantage of trading using opposite CBrain AS and PFA Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBrain AS position performs unexpectedly, PFA 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 PFA Invest will offset losses from the drop in PFA 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 |
| PFA Invest vs. Netcompany Group AS | PFA Invest vs. cBrain AS | PFA Invest vs. ALK Abell AS | PFA Invest vs. Green Hydrogen Systems |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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