Correlation Between Continental Aktiengesellscha and Dno ASA
Can any of the company-specific risk be diversified away by investing in both Continental Aktiengesellscha and Dno ASA 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 Continental Aktiengesellscha and Dno ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Continental Aktiengesellschaft and Dno ASA, you can compare the effects of market volatilities on Continental Aktiengesellscha and Dno ASA 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 Continental Aktiengesellscha with a short position of Dno ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Continental Aktiengesellscha and Dno ASA.
Diversification Opportunities for Continental Aktiengesellscha and Dno ASA
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Continental and Dno is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Continental Aktiengesellschaft and Dno ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dno ASA and Continental Aktiengesellscha 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 Continental Aktiengesellschaft are associated (or correlated) with Dno ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dno ASA has no effect on the direction of Continental Aktiengesellscha i.e., Continental Aktiengesellscha and Dno ASA go up and down completely randomly.
Pair Corralation between Continental Aktiengesellscha and Dno ASA
Assuming the 90 days horizon Continental Aktiengesellschaft is expected to generate 1.52 times more return on investment than Dno ASA. However, Continental Aktiengesellscha is 1.52 times more volatile than Dno ASA. It trades about 0.13 of its potential returns per unit of risk. Dno ASA is currently generating about 0.07 per unit of risk. If you would invest 5,698 in Continental Aktiengesellschaft on September 2, 2024 and sell it today you would earn a total of 486.00 from holding Continental Aktiengesellschaft or generate 8.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Continental Aktiengesellschaft vs. Dno ASA
Performance |
| Timeline |
| Continental Aktiengesellscha |
| Dno ASA |
Continental Aktiengesellscha and Dno ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Continental Aktiengesellscha and Dno ASA
The main advantage of trading using opposite Continental Aktiengesellscha and Dno ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Continental Aktiengesellscha position performs unexpectedly, Dno ASA 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 Dno ASA will offset losses from the drop in Dno ASA's long position.| Continental Aktiengesellscha vs. JIAHUA STORES | Continental Aktiengesellscha vs. THAI BEVERAGE | Continental Aktiengesellscha vs. Fast Retailing Co | Continental Aktiengesellscha vs. The Boston Beer |
| Dno ASA vs. Plastic Omnium | Dno ASA vs. Rayonier Advanced Materials | Dno ASA vs. GOODYEAR T RUBBER | Dno ASA vs. KIMBALL ELECTRONICS |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |