Correlation Between Copenhagen Airports and Tryg AS
Can any of the company-specific risk be diversified away by investing in both Copenhagen Airports and Tryg 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 Tryg 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 Tryg AS, you can compare the effects of market volatilities on Copenhagen Airports and Tryg 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 Tryg AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Copenhagen Airports and Tryg AS.
Diversification Opportunities for Copenhagen Airports and Tryg AS
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Copenhagen and Tryg is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Copenhagen Airports AS and Tryg AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tryg 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 Tryg AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tryg AS has no effect on the direction of Copenhagen Airports i.e., Copenhagen Airports and Tryg AS go up and down completely randomly.
Pair Corralation between Copenhagen Airports and Tryg AS
Assuming the 90 days trading horizon Copenhagen Airports AS is expected to under-perform the Tryg AS. In addition to that, Copenhagen Airports is 1.66 times more volatile than Tryg AS. It trades about -0.11 of its total potential returns per unit of risk. Tryg AS is currently generating about 0.12 per unit of volatility. If you would invest 14,127 in Tryg AS on September 3, 2024 and sell it today you would earn a total of 2,133 from holding Tryg AS or generate 15.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Copenhagen Airports AS vs. Tryg AS
Performance |
| Timeline |
| Copenhagen Airports |
| Tryg AS |
Copenhagen Airports and Tryg AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Copenhagen Airports and Tryg AS
The main advantage of trading using opposite Copenhagen Airports and Tryg AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Copenhagen Airports position performs unexpectedly, Tryg 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 Tryg AS will offset losses from the drop in Tryg AS's long position.The idea behind Copenhagen Airports AS and Tryg AS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |