Correlation Between CBrain AS and Silkeborg
Can any of the company-specific risk be diversified away by investing in both CBrain AS and Silkeborg 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 Silkeborg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between cBrain AS and Silkeborg IF Invest, you can compare the effects of market volatilities on CBrain AS and Silkeborg 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 Silkeborg. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBrain AS and Silkeborg.
Diversification Opportunities for CBrain AS and Silkeborg
Significant diversification
The 3 months correlation between CBrain and Silkeborg is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding cBrain AS and Silkeborg IF Invest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silkeborg IF Invest 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 Silkeborg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silkeborg IF Invest has no effect on the direction of CBrain AS i.e., CBrain AS and Silkeborg go up and down completely randomly.
Pair Corralation between CBrain AS and Silkeborg
Assuming the 90 days trading horizon cBrain AS is expected to under-perform the Silkeborg. In addition to that, CBrain AS is 1.07 times more volatile than Silkeborg IF Invest. It trades about -0.22 of its total potential returns per unit of risk. Silkeborg IF Invest is currently generating about -0.14 per unit of volatility. If you would invest 4,000 in Silkeborg IF Invest on October 12, 2024 and sell it today you would lose (240.00) from holding Silkeborg IF Invest or give up 6.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
cBrain AS vs. Silkeborg IF Invest
Performance |
| Timeline |
| cBrain AS |
| Silkeborg IF Invest |
CBrain AS and Silkeborg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBrain AS and Silkeborg
The main advantage of trading using opposite CBrain AS and Silkeborg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBrain AS position performs unexpectedly, Silkeborg 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 Silkeborg will offset losses from the drop in Silkeborg's long position.| CBrain AS vs. ChemoMetec AS | CBrain AS vs. Ambu AS | CBrain AS vs. Genmab AS | CBrain AS vs. Zealand Pharma AS |
| Silkeborg vs. PARKEN Sport Entertainment | Silkeborg vs. Bang Olufsen | Silkeborg vs. BioPorto | Silkeborg vs. cBrain 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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