Correlation Between Gyldendal and Alefarm Brewing
Can any of the company-specific risk be diversified away by investing in both Gyldendal and Alefarm Brewing 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 Gyldendal and Alefarm Brewing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gyldendal AS and Alefarm Brewing AS, you can compare the effects of market volatilities on Gyldendal and Alefarm Brewing 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 Gyldendal with a short position of Alefarm Brewing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gyldendal and Alefarm Brewing.
Diversification Opportunities for Gyldendal and Alefarm Brewing
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gyldendal and Alefarm is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Gyldendal AS and Alefarm Brewing AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alefarm Brewing AS and Gyldendal 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 Gyldendal AS are associated (or correlated) with Alefarm Brewing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alefarm Brewing AS has no effect on the direction of Gyldendal i.e., Gyldendal and Alefarm Brewing go up and down completely randomly.
Pair Corralation between Gyldendal and Alefarm Brewing
Assuming the 90 days trading horizon Gyldendal is expected to generate 2.05 times less return on investment than Alefarm Brewing. But when comparing it to its historical volatility, Gyldendal AS is 1.96 times less risky than Alefarm Brewing. It trades about 0.17 of its potential returns per unit of risk. Alefarm Brewing AS is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 138.00 in Alefarm Brewing AS on November 27, 2024 and sell it today you would earn a total of 17.00 from holding Alefarm Brewing AS or generate 12.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gyldendal AS vs. Alefarm Brewing AS
Performance |
| Timeline |
| Gyldendal AS |
| Alefarm Brewing AS |
Gyldendal and Alefarm Brewing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gyldendal and Alefarm Brewing
The main advantage of trading using opposite Gyldendal and Alefarm Brewing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gyldendal position performs unexpectedly, Alefarm Brewing 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 Alefarm Brewing will offset losses from the drop in Alefarm Brewing's long position.| Gyldendal vs. Gyldendal AS | Gyldendal vs. Danske Andelskassers Bank | Gyldendal vs. Laan Spar Bank | Gyldendal vs. Kreditbanken AS |
| Alefarm Brewing vs. BankIn Bredygt Klimaakt | Alefarm Brewing vs. NTG Nordic Transport | Alefarm Brewing vs. Dataproces Group AS | Alefarm Brewing vs. Formuepleje Mix Medium |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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