Correlation Between Pryme BV and Cambi ASA
Can any of the company-specific risk be diversified away by investing in both Pryme BV and Cambi ASA 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 Pryme BV and Cambi ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pryme BV and Cambi ASA, you can compare the effects of market volatilities on Pryme BV and Cambi ASA 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 Pryme BV with a short position of Cambi ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pryme BV and Cambi ASA.
Diversification Opportunities for Pryme BV and Cambi ASA
Very good diversification
The 3 months correlation between Pryme and Cambi is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Pryme BV and Cambi ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambi ASA and Pryme BV 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 Pryme BV are associated (or correlated) with Cambi ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambi ASA has no effect on the direction of Pryme BV i.e., Pryme BV and Cambi ASA go up and down completely randomly.
Pair Corralation between Pryme BV and Cambi ASA
Assuming the 90 days trading horizon Pryme BV is expected to under-perform the Cambi ASA. In addition to that, Pryme BV is 1.55 times more volatile than Cambi ASA. It trades about -0.03 of its total potential returns per unit of risk. Cambi ASA is currently generating about 0.08 per unit of volatility. If you would invest 460.00 in Cambi ASA on September 4, 2024 and sell it today you would earn a total of 950.00 from holding Cambi ASA or generate 206.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pryme BV vs. Cambi ASA
Performance |
| Timeline |
| Pryme BV |
| Cambi ASA |
Pryme BV and Cambi ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pryme BV and Cambi ASA
The main advantage of trading using opposite Pryme BV and Cambi ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pryme BV position performs unexpectedly, Cambi ASA 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 Cambi ASA will offset losses from the drop in Cambi ASA's long position.| Pryme BV vs. Xplora Technologies As | Pryme BV vs. Dolphin Drilling AS | Pryme BV vs. Awilco Drilling PLC | Pryme BV vs. Sea1 Offshore |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |