Correlation Between CBrain AS and Risma Systems
Can any of the company-specific risk be diversified away by investing in both CBrain AS and Risma Systems 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 Risma Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between cBrain AS and Risma Systems AS, you can compare the effects of market volatilities on CBrain AS and Risma Systems 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 Risma Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBrain AS and Risma Systems.
Diversification Opportunities for CBrain AS and Risma Systems
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CBrain and Risma is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding cBrain AS and Risma Systems AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Risma Systems 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 Risma Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Risma Systems AS has no effect on the direction of CBrain AS i.e., CBrain AS and Risma Systems go up and down completely randomly.
Pair Corralation between CBrain AS and Risma Systems
Assuming the 90 days trading horizon cBrain AS is expected to generate 0.57 times more return on investment than Risma Systems. However, cBrain AS is 1.76 times less risky than Risma Systems. It trades about 0.32 of its potential returns per unit of risk. Risma Systems AS is currently generating about 0.05 per unit of risk. If you would invest 16,840 in cBrain AS on September 4, 2024 and sell it today you would earn a total of 4,210 from holding cBrain AS or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
cBrain AS vs. Risma Systems AS
Performance |
| Timeline |
| cBrain AS |
| Risma Systems AS |
CBrain AS and Risma Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBrain AS and Risma Systems
The main advantage of trading using opposite CBrain AS and Risma Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBrain AS position performs unexpectedly, Risma Systems 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 Risma Systems will offset losses from the drop in Risma Systems' long position.| CBrain AS vs. ChemoMetec AS | CBrain AS vs. Ambu AS | CBrain AS vs. Genmab AS | CBrain AS vs. Zealand Pharma AS |
| Risma Systems vs. Impero AS | Risma Systems vs. MapsPeople AS | Risma Systems vs. Penneo AS | Risma Systems vs. Nexcom 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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