Correlation Between Penneo AS and Conferize
Can any of the company-specific risk be diversified away by investing in both Penneo AS and Conferize 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 Penneo AS and Conferize into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Penneo AS and Conferize AS, you can compare the effects of market volatilities on Penneo AS and Conferize 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 Penneo AS with a short position of Conferize. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penneo AS and Conferize.
Diversification Opportunities for Penneo AS and Conferize
Very weak diversification
The 3 months correlation between Penneo and Conferize is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Penneo AS and Conferize AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conferize AS and Penneo 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 Penneo AS are associated (or correlated) with Conferize. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conferize AS has no effect on the direction of Penneo AS i.e., Penneo AS and Conferize go up and down completely randomly.
Pair Corralation between Penneo AS and Conferize
Assuming the 90 days trading horizon Penneo AS is expected to generate 0.28 times more return on investment than Conferize. However, Penneo AS is 3.6 times less risky than Conferize. It trades about -0.02 of its potential returns per unit of risk. Conferize AS is currently generating about -0.04 per unit of risk. If you would invest 846.00 in Penneo AS on August 29, 2024 and sell it today you would lose (46.00) from holding Penneo AS or give up 5.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Penneo AS vs. Conferize AS
Performance |
| Timeline |
| Penneo AS |
| Conferize AS |
Penneo AS and Conferize Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penneo AS and Conferize
The main advantage of trading using opposite Penneo AS and Conferize positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penneo AS position performs unexpectedly, Conferize 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 Conferize will offset losses from the drop in Conferize's long position.| Penneo AS vs. cBrain AS | Penneo AS vs. FOM Technologies AS | Penneo AS vs. ChemoMetec AS | Penneo AS vs. BioPorto |
| Conferize vs. BioPorto | Conferize vs. Dataproces Group AS | Conferize vs. Penneo AS | Conferize vs. Bavarian Nordic |
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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