Correlation Between Dataproces Group and Carlsberg
Can any of the company-specific risk be diversified away by investing in both Dataproces Group and Carlsberg 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 Dataproces Group and Carlsberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dataproces Group AS and Carlsberg AS, you can compare the effects of market volatilities on Dataproces Group and Carlsberg 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 Dataproces Group with a short position of Carlsberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dataproces Group and Carlsberg.
Diversification Opportunities for Dataproces Group and Carlsberg
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dataproces and Carlsberg is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Dataproces Group AS and Carlsberg AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlsberg AS and Dataproces Group 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 Dataproces Group AS are associated (or correlated) with Carlsberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlsberg AS has no effect on the direction of Dataproces Group i.e., Dataproces Group and Carlsberg go up and down completely randomly.
Pair Corralation between Dataproces Group and Carlsberg
Assuming the 90 days trading horizon Dataproces Group AS is expected to generate 1.11 times more return on investment than Carlsberg. However, Dataproces Group is 1.11 times more volatile than Carlsberg AS. It trades about 0.05 of its potential returns per unit of risk. Carlsberg AS is currently generating about -0.08 per unit of risk. If you would invest 585.00 in Dataproces Group AS on September 19, 2024 and sell it today you would earn a total of 10.00 from holding Dataproces Group AS or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dataproces Group AS vs. Carlsberg AS
Performance |
| Timeline |
| Dataproces Group |
| Carlsberg AS |
Dataproces Group and Carlsberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dataproces Group and Carlsberg
The main advantage of trading using opposite Dataproces Group and Carlsberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dataproces Group position performs unexpectedly, Carlsberg 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 Carlsberg will offset losses from the drop in Carlsberg's long position.| Dataproces Group vs. GN Store Nord | Dataproces Group vs. Ambu AS | Dataproces Group vs. ROCKWOOL International AS | Dataproces Group vs. Genmab AS |
| Carlsberg vs. Dataproces Group AS | Carlsberg vs. Fynske Bank AS | Carlsberg vs. Danske Andelskassers Bank | Carlsberg vs. PARKEN Sport Entertainment |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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