Correlation Between CBrain AS and Skjern Bank
Can any of the company-specific risk be diversified away by investing in both CBrain AS and Skjern Bank 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 Skjern Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between cBrain AS and Skjern Bank AS, you can compare the effects of market volatilities on CBrain AS and Skjern Bank 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 Skjern Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBrain AS and Skjern Bank.
Diversification Opportunities for CBrain AS and Skjern Bank
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CBrain and Skjern is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding cBrain AS and Skjern Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skjern Bank 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 Skjern Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skjern Bank AS has no effect on the direction of CBrain AS i.e., CBrain AS and Skjern Bank go up and down completely randomly.
Pair Corralation between CBrain AS and Skjern Bank
Assuming the 90 days trading horizon CBrain AS is expected to generate 1.11 times less return on investment than Skjern Bank. In addition to that, CBrain AS is 1.7 times more volatile than Skjern Bank AS. It trades about 0.03 of its total potential returns per unit of risk. Skjern Bank AS is currently generating about 0.06 per unit of volatility. If you would invest 12,452 in Skjern Bank AS on November 9, 2024 and sell it today you would earn a total of 6,998 from holding Skjern Bank AS or generate 56.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
cBrain AS vs. Skjern Bank AS
Performance |
| Timeline |
| cBrain AS |
| Skjern Bank AS |
CBrain AS and Skjern Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBrain AS and Skjern Bank
The main advantage of trading using opposite CBrain AS and Skjern Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBrain AS position performs unexpectedly, Skjern Bank 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 Skjern Bank will offset losses from the drop in Skjern Bank's long position.| CBrain AS vs. ChemoMetec AS | CBrain AS vs. Ambu AS | CBrain AS vs. Genmab AS | CBrain AS vs. Zealand Pharma AS |
| Skjern Bank vs. Danske Andelskassers Bank | Skjern Bank vs. NTG Nordic Transport | Skjern Bank vs. Dataproces Group AS | Skjern Bank vs. Moens Bank 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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