Correlation Between CBrain AS and Trifork Holding
Can any of the company-specific risk be diversified away by investing in both CBrain AS and Trifork Holding 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 Trifork Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between cBrain AS and Trifork Holding AG, you can compare the effects of market volatilities on CBrain AS and Trifork Holding 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 Trifork Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBrain AS and Trifork Holding.
Diversification Opportunities for CBrain AS and Trifork Holding
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between CBrain and Trifork is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding cBrain AS and Trifork Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trifork Holding AG 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 Trifork Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trifork Holding AG has no effect on the direction of CBrain AS i.e., CBrain AS and Trifork Holding go up and down completely randomly.
Pair Corralation between CBrain AS and Trifork Holding
Assuming the 90 days trading horizon cBrain AS is expected to generate 1.03 times more return on investment than Trifork Holding. However, CBrain AS is 1.03 times more volatile than Trifork Holding AG. It trades about 0.22 of its potential returns per unit of risk. Trifork Holding AG is currently generating about -0.15 per unit of risk. If you would invest 17,700 in cBrain AS on August 31, 2024 and sell it today you would earn a total of 3,000 from holding cBrain AS or generate 16.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
cBrain AS vs. Trifork Holding AG
Performance |
| Timeline |
| cBrain AS |
| Trifork Holding AG |
CBrain AS and Trifork Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBrain AS and Trifork Holding
The main advantage of trading using opposite CBrain AS and Trifork Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBrain AS position performs unexpectedly, Trifork Holding 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 Trifork Holding will offset losses from the drop in Trifork Holding's long position.| CBrain AS vs. ChemoMetec AS | CBrain AS vs. Ambu AS | CBrain AS vs. Genmab AS | CBrain AS vs. Zealand Pharma AS |
| Trifork Holding vs. Novo Nordisk AS | Trifork Holding vs. Nordea Bank Abp | Trifork Holding vs. DSV Panalpina AS | Trifork Holding vs. AP Mller |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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