Correlation Between Columbus and Schouw
Can any of the company-specific risk be diversified away by investing in both Columbus and Schouw 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 Columbus and Schouw into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbus AS and Schouw Co, you can compare the effects of market volatilities on Columbus and Schouw 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 Columbus with a short position of Schouw. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbus and Schouw.
Diversification Opportunities for Columbus and Schouw
Very good diversification
The 3 months correlation between Columbus and Schouw is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Columbus AS and Schouw Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schouw and Columbus 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 Columbus AS are associated (or correlated) with Schouw. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schouw has no effect on the direction of Columbus i.e., Columbus and Schouw go up and down completely randomly.
Pair Corralation between Columbus and Schouw
Assuming the 90 days trading horizon Columbus AS is expected to generate 1.28 times more return on investment than Schouw. However, Columbus is 1.28 times more volatile than Schouw Co. It trades about 0.08 of its potential returns per unit of risk. Schouw Co is currently generating about 0.0 per unit of risk. If you would invest 684.00 in Columbus AS on August 29, 2024 and sell it today you would earn a total of 386.00 from holding Columbus AS or generate 56.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Columbus AS vs. Schouw Co
Performance |
| Timeline |
| Columbus AS |
| Schouw |
Columbus and Schouw Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbus and Schouw
The main advantage of trading using opposite Columbus and Schouw positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbus position performs unexpectedly, Schouw 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 Schouw will offset losses from the drop in Schouw's long position.| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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