Correlation Between Brd Klee and CBrain AS
Can any of the company-specific risk be diversified away by investing in both Brd Klee 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 Brd Klee and CBrain AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brd Klee AS and cBrain AS, you can compare the effects of market volatilities on Brd Klee 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 Brd Klee with a short position of CBrain AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brd Klee and CBrain AS.
Diversification Opportunities for Brd Klee and CBrain AS
Excellent diversification
The 3 months correlation between Brd and CBrain is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Brd Klee AS and cBrain AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on cBrain AS and Brd Klee 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 Brd Klee 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 Brd Klee i.e., Brd Klee and CBrain AS go up and down completely randomly.
Pair Corralation between Brd Klee and CBrain AS
Assuming the 90 days trading horizon Brd Klee AS is expected to generate 0.8 times more return on investment than CBrain AS. However, Brd Klee AS is 1.26 times less risky than CBrain AS. It trades about 0.08 of its potential returns per unit of risk. cBrain AS is currently generating about -0.11 per unit of risk. If you would invest 380,000 in Brd Klee AS on December 11, 2024 and sell it today you would earn a total of 42,000 from holding Brd Klee AS or generate 11.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brd Klee AS vs. cBrain AS
Performance |
| Timeline |
| Brd Klee AS |
| cBrain AS |
Brd Klee and CBrain AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brd Klee and CBrain AS
The main advantage of trading using opposite Brd Klee and CBrain AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brd Klee 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.| Brd Klee vs. RIAS AS | Brd Klee vs. Investeringsselskabet Luxor AS | Brd Klee vs. Glunz Jensen | Brd Klee vs. SKAKO AS |
| 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..
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