Correlation Between Cemat AS and Movinn AS
Can any of the company-specific risk be diversified away by investing in both Cemat AS and Movinn AS 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 Movinn AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cemat AS and Movinn AS, you can compare the effects of market volatilities on Cemat AS and Movinn AS 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 Movinn AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cemat AS and Movinn AS.
Diversification Opportunities for Cemat AS and Movinn AS
Significant diversification
The 3 months correlation between Cemat and Movinn is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Cemat AS and Movinn AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Movinn 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 Movinn AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Movinn AS has no effect on the direction of Cemat AS i.e., Cemat AS and Movinn AS go up and down completely randomly.
Pair Corralation between Cemat AS and Movinn AS
Assuming the 90 days trading horizon Cemat AS is expected to under-perform the Movinn AS. But the stock apears to be less risky and, when comparing its historical volatility, Cemat AS is 3.63 times less risky than Movinn AS. The stock trades about -0.11 of its potential returns per unit of risk. The Movinn AS is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 372.00 in Movinn AS on September 1, 2024 and sell it today you would earn a total of 10.00 from holding Movinn AS or generate 2.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cemat AS vs. Movinn AS
Performance |
| Timeline |
| Cemat AS |
| Movinn AS |
Cemat AS and Movinn AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cemat AS and Movinn AS
The main advantage of trading using opposite Cemat AS and Movinn AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cemat AS position performs unexpectedly, Movinn AS 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 Movinn AS will offset losses from the drop in Movinn AS'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 |
| Movinn AS vs. Cessatech AS | Movinn AS vs. NTG Nordic Transport | Movinn AS vs. Nordinvestments AS | Movinn AS vs. Ringkjoebing Landbobank 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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