Correlation Between Impero AS and CBrain AS
Can any of the company-specific risk be diversified away by investing in both Impero AS and CBrain AS 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 Impero AS and CBrain AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impero AS and cBrain AS, you can compare the effects of market volatilities on Impero AS and CBrain AS 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 Impero AS with a short position of CBrain AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impero AS and CBrain AS.
Diversification Opportunities for Impero AS and CBrain AS
Significant diversification
The 3 months correlation between Impero and CBrain is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Impero AS and cBrain AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on cBrain AS and Impero AS 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 Impero AS are associated (or correlated) with CBrain AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of cBrain AS has no effect on the direction of Impero AS i.e., Impero AS and CBrain AS go up and down completely randomly.
Pair Corralation between Impero AS and CBrain AS
Assuming the 90 days trading horizon Impero AS is expected to generate 2.2 times more return on investment than CBrain AS. However, Impero AS is 2.2 times more volatile than cBrain AS. It trades about 0.19 of its potential returns per unit of risk. cBrain AS is currently generating about 0.31 per unit of risk. If you would invest 450.00 in Impero AS on September 3, 2024 and sell it today you would earn a total of 125.00 from holding Impero AS or generate 27.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impero AS vs. cBrain AS
Performance |
| Timeline |
| Impero AS |
| cBrain AS |
Impero AS and CBrain AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impero AS and CBrain AS
The main advantage of trading using opposite Impero AS and CBrain AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impero AS position performs unexpectedly, CBrain AS 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 CBrain AS will offset losses from the drop in CBrain AS's long position.| Impero AS vs. cBrain AS | Impero AS vs. FOM Technologies AS | Impero AS vs. ChemoMetec AS | Impero AS vs. BioPorto |
| CBrain AS vs. ChemoMetec AS | CBrain AS vs. Ambu AS | CBrain AS vs. Genmab AS | CBrain AS vs. Zealand Pharma 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |