Correlation Between Crunchfish and Clavister Holding
Can any of the company-specific risk be diversified away by investing in both Crunchfish and Clavister 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 Crunchfish and Clavister Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crunchfish AB and Clavister Holding AB, you can compare the effects of market volatilities on Crunchfish and Clavister 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 Crunchfish with a short position of Clavister Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crunchfish and Clavister Holding.
Diversification Opportunities for Crunchfish and Clavister Holding
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Crunchfish and Clavister is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Crunchfish AB and Clavister Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clavister Holding and Crunchfish 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 Crunchfish AB are associated (or correlated) with Clavister Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clavister Holding has no effect on the direction of Crunchfish i.e., Crunchfish and Clavister Holding go up and down completely randomly.
Pair Corralation between Crunchfish and Clavister Holding
Assuming the 90 days trading horizon Crunchfish AB is expected to under-perform the Clavister Holding. But the stock apears to be less risky and, when comparing its historical volatility, Crunchfish AB is 1.07 times less risky than Clavister Holding. The stock trades about -0.17 of its potential returns per unit of risk. The Clavister Holding AB is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 168.00 in Clavister Holding AB on August 25, 2024 and sell it today you would earn a total of 13.00 from holding Clavister Holding AB or generate 7.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crunchfish AB vs. Clavister Holding AB
Performance |
| Timeline |
| Crunchfish AB |
| Clavister Holding |
Crunchfish and Clavister Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crunchfish and Clavister Holding
The main advantage of trading using opposite Crunchfish and Clavister Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crunchfish position performs unexpectedly, Clavister 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 Clavister Holding will offset losses from the drop in Clavister Holding's long position.| Crunchfish vs. Lifco AB | Crunchfish vs. Lagercrantz Group AB | Crunchfish vs. Addtech AB | Crunchfish vs. Instalco Intressenter AB |
| Clavister Holding vs. BIMobject AB | Clavister Holding vs. Advenica AB | Clavister Holding vs. Crunchfish AB | Clavister Holding vs. Nexam Chemical Holding |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |