Correlation Between Glunz Jensen and Brd Klee
Can any of the company-specific risk be diversified away by investing in both Glunz Jensen and Brd Klee 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 Glunz Jensen and Brd Klee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glunz Jensen and Brd Klee AS, you can compare the effects of market volatilities on Glunz Jensen and Brd Klee 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 Glunz Jensen with a short position of Brd Klee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glunz Jensen and Brd Klee.
Diversification Opportunities for Glunz Jensen and Brd Klee
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Glunz and Brd is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Glunz Jensen and Brd Klee AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brd Klee AS and Glunz Jensen 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 Glunz Jensen are associated (or correlated) with Brd Klee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brd Klee AS has no effect on the direction of Glunz Jensen i.e., Glunz Jensen and Brd Klee go up and down completely randomly.
Pair Corralation between Glunz Jensen and Brd Klee
Assuming the 90 days horizon Glunz Jensen is expected to generate 1.51 times less return on investment than Brd Klee. But when comparing it to its historical volatility, Glunz Jensen is 1.17 times less risky than Brd Klee. It trades about 0.01 of its potential returns per unit of risk. Brd Klee AS is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 398,000 in Brd Klee AS on November 5, 2024 and sell it today you would lose (2,000) from holding Brd Klee AS or give up 0.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glunz Jensen vs. Brd Klee AS
Performance |
| Timeline |
| Glunz Jensen |
| Brd Klee AS |
Glunz Jensen and Brd Klee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glunz Jensen and Brd Klee
The main advantage of trading using opposite Glunz Jensen and Brd Klee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glunz Jensen position performs unexpectedly, Brd Klee 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 Brd Klee will offset losses from the drop in Brd Klee's long position.| Glunz Jensen vs. First Farms AS | Glunz Jensen vs. SKAKO AS | Glunz Jensen vs. Rovsing AS | Glunz Jensen vs. Roblon AS |
| Brd Klee vs. RIAS AS | Brd Klee vs. Investeringsselskabet Luxor AS | Brd Klee vs. Glunz Jensen | Brd Klee vs. SKAKO 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |