Correlation Between Hvidbjerg Bank and Carlsberg
Can any of the company-specific risk be diversified away by investing in both Hvidbjerg Bank 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 Hvidbjerg Bank and Carlsberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hvidbjerg Bank and Carlsberg AS, you can compare the effects of market volatilities on Hvidbjerg Bank 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 Hvidbjerg Bank with a short position of Carlsberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hvidbjerg Bank and Carlsberg.
Diversification Opportunities for Hvidbjerg Bank and Carlsberg
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hvidbjerg and Carlsberg is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Hvidbjerg Bank and Carlsberg AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlsberg AS and Hvidbjerg Bank 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 Hvidbjerg Bank 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 Hvidbjerg Bank i.e., Hvidbjerg Bank and Carlsberg go up and down completely randomly.
Pair Corralation between Hvidbjerg Bank and Carlsberg
Assuming the 90 days trading horizon Hvidbjerg Bank is expected to generate 0.78 times more return on investment than Carlsberg. However, Hvidbjerg Bank is 1.28 times less risky than Carlsberg. It trades about 0.14 of its potential returns per unit of risk. Carlsberg AS is currently generating about -0.07 per unit of risk. If you would invest 11,400 in Hvidbjerg Bank on September 3, 2024 and sell it today you would earn a total of 400.00 from holding Hvidbjerg Bank or generate 3.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hvidbjerg Bank vs. Carlsberg AS
Performance |
| Timeline |
| Hvidbjerg Bank |
| Carlsberg AS |
Hvidbjerg Bank and Carlsberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hvidbjerg Bank and Carlsberg
The main advantage of trading using opposite Hvidbjerg Bank and Carlsberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hvidbjerg Bank 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.| Hvidbjerg Bank vs. FLSmidth Co | Hvidbjerg Bank vs. Danske Bank AS | Hvidbjerg Bank vs. ISS AS | Hvidbjerg Bank vs. DSV Panalpina AS |
| Carlsberg vs. Hvidbjerg Bank | Carlsberg vs. Moens Bank AS | Carlsberg vs. Embla Medical hf | Carlsberg vs. Spar Nord Bank |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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