Correlation Between Cemat AS and Jeudan
Can any of the company-specific risk be diversified away by investing in both Cemat AS and Jeudan 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 Jeudan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cemat AS and Jeudan, you can compare the effects of market volatilities on Cemat AS and Jeudan 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 Jeudan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cemat AS and Jeudan.
Diversification Opportunities for Cemat AS and Jeudan
Poor diversification
The 3 months correlation between Cemat and Jeudan is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Cemat AS and Jeudan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeudan 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 Jeudan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeudan has no effect on the direction of Cemat AS i.e., Cemat AS and Jeudan go up and down completely randomly.
Pair Corralation between Cemat AS and Jeudan
Assuming the 90 days trading horizon Cemat AS is expected to generate 0.58 times more return on investment than Jeudan. However, Cemat AS is 1.71 times less risky than Jeudan. It trades about -0.11 of its potential returns per unit of risk. Jeudan is currently generating about -0.43 per unit of risk. If you would invest 107.00 in Cemat AS on September 1, 2024 and sell it today you would lose (2.00) from holding Cemat AS or give up 1.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cemat AS vs. Jeudan
Performance |
| Timeline |
| Cemat AS |
| Jeudan |
Cemat AS and Jeudan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cemat AS and Jeudan
The main advantage of trading using opposite Cemat AS and Jeudan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cemat AS position performs unexpectedly, Jeudan 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 Jeudan will offset losses from the drop in Jeudan's long position.| Cemat AS vs. BioPorto | Cemat AS vs. Newcap Holding AS | Cemat AS vs. Agat Ejendomme AS | Cemat AS vs. PF Atlantic Petroleum |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |