Correlation Between Copenhagen Airports and Impero AS
Can any of the company-specific risk be diversified away by investing in both Copenhagen Airports and Impero 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 Copenhagen Airports and Impero AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Copenhagen Airports AS and Impero AS, you can compare the effects of market volatilities on Copenhagen Airports and Impero 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 Copenhagen Airports with a short position of Impero AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Copenhagen Airports and Impero AS.
Diversification Opportunities for Copenhagen Airports and Impero AS
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Copenhagen and Impero is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Copenhagen Airports AS and Impero AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impero AS and Copenhagen Airports 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 Copenhagen Airports AS are associated (or correlated) with Impero AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impero AS has no effect on the direction of Copenhagen Airports i.e., Copenhagen Airports and Impero AS go up and down completely randomly.
Pair Corralation between Copenhagen Airports and Impero AS
Assuming the 90 days trading horizon Copenhagen Airports AS is expected to under-perform the Impero AS. But the stock apears to be less risky and, when comparing its historical volatility, Copenhagen Airports AS is 5.13 times less risky than Impero AS. The stock trades about -0.32 of its potential returns per unit of risk. The Impero AS is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 500.00 in Impero AS on August 29, 2024 and sell it today you would earn a total of 50.00 from holding Impero AS or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Copenhagen Airports AS vs. Impero AS
Performance |
| Timeline |
| Copenhagen Airports |
| Impero AS |
Copenhagen Airports and Impero AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Copenhagen Airports and Impero AS
The main advantage of trading using opposite Copenhagen Airports and Impero AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Copenhagen Airports position performs unexpectedly, Impero 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 Impero AS will offset losses from the drop in Impero AS's long position.| Copenhagen Airports vs. GN Store Nord | Copenhagen Airports vs. DSV Panalpina AS | Copenhagen Airports vs. ISS AS | Copenhagen Airports vs. Ambu AS |
| Impero AS vs. Penneo AS | Impero AS vs. Hydract AS | Impero AS vs. Shape Robotics AS | Impero AS vs. Dataproces Group 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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