Correlation Between Cemat AS and Columbus
Can any of the company-specific risk be diversified away by investing in both Cemat AS and Columbus 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 Cemat AS and Columbus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cemat AS and Columbus AS, you can compare the effects of market volatilities on Cemat AS and Columbus 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 Cemat AS with a short position of Columbus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cemat AS and Columbus.
Diversification Opportunities for Cemat AS and Columbus
Very weak diversification
The 3 months correlation between Cemat and Columbus is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Cemat AS and Columbus AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbus AS and Cemat 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 Cemat AS are associated (or correlated) with Columbus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbus AS has no effect on the direction of Cemat AS i.e., Cemat AS and Columbus go up and down completely randomly.
Pair Corralation between Cemat AS and Columbus
Assuming the 90 days trading horizon Cemat AS is expected to under-perform the Columbus. But the stock apears to be less risky and, when comparing its historical volatility, Cemat AS is 1.43 times less risky than Columbus. The stock trades about -0.2 of its potential returns per unit of risk. The Columbus AS is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,075 in Columbus AS on August 28, 2024 and sell it today you would lose (5.00) from holding Columbus AS or give up 0.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cemat AS vs. Columbus AS
Performance |
| Timeline |
| Cemat AS |
| Columbus AS |
Cemat AS and Columbus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cemat AS and Columbus
The main advantage of trading using opposite Cemat AS and Columbus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cemat AS position performs unexpectedly, Columbus 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 Columbus will offset losses from the drop in Columbus' long position.| Cemat AS vs. BioPorto | Cemat AS vs. Newcap Holding AS | Cemat AS vs. Agat Ejendomme AS | Cemat AS vs. PF Atlantic Petroleum |
| Columbus vs. cBrain AS | Columbus vs. FOM Technologies AS | Columbus vs. Penneo AS | Columbus vs. Dataproces Group 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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