Correlation Between Cibus Nordic and KlaraBo Sverige
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By analyzing existing cross correlation between Cibus Nordic Real and KlaraBo Sverige AB, you can compare the effects of market volatilities on Cibus Nordic and KlaraBo Sverige 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 Cibus Nordic with a short position of KlaraBo Sverige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cibus Nordic and KlaraBo Sverige.
Diversification Opportunities for Cibus Nordic and KlaraBo Sverige
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cibus and KlaraBo is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Cibus Nordic Real and KlaraBo Sverige AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KlaraBo Sverige AB and Cibus Nordic 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 Cibus Nordic Real are associated (or correlated) with KlaraBo Sverige. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KlaraBo Sverige AB has no effect on the direction of Cibus Nordic i.e., Cibus Nordic and KlaraBo Sverige go up and down completely randomly.
Pair Corralation between Cibus Nordic and KlaraBo Sverige
Assuming the 90 days trading horizon Cibus Nordic Real is expected to generate 0.69 times more return on investment than KlaraBo Sverige. However, Cibus Nordic Real is 1.45 times less risky than KlaraBo Sverige. It trades about 0.11 of its potential returns per unit of risk. KlaraBo Sverige AB is currently generating about 0.07 per unit of risk. If you would invest 10,560 in Cibus Nordic Real on September 4, 2024 and sell it today you would earn a total of 6,765 from holding Cibus Nordic Real or generate 64.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cibus Nordic Real vs. KlaraBo Sverige AB
Performance |
| Timeline |
| Cibus Nordic Real |
| KlaraBo Sverige AB |
Cibus Nordic and KlaraBo Sverige Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cibus Nordic and KlaraBo Sverige
The main advantage of trading using opposite Cibus Nordic and KlaraBo Sverige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cibus Nordic position performs unexpectedly, KlaraBo Sverige 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 KlaraBo Sverige will offset losses from the drop in KlaraBo Sverige's long position.The idea behind Cibus Nordic Real and KlaraBo Sverige AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| KlaraBo Sverige vs. Cibus Nordic Real | KlaraBo Sverige vs. ALM Equity AB | KlaraBo Sverige vs. Castellum AB |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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