Correlation Between Royal Unibrew and Carlsberg
Can any of the company-specific risk be diversified away by investing in both Royal Unibrew and Carlsberg 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 Royal Unibrew and Carlsberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Royal Unibrew AS and Carlsberg AS, you can compare the effects of market volatilities on Royal Unibrew and Carlsberg 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 Royal Unibrew with a short position of Carlsberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Royal Unibrew and Carlsberg.
Diversification Opportunities for Royal Unibrew and Carlsberg
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Royal and Carlsberg is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Royal Unibrew AS and Carlsberg AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlsberg AS and Royal Unibrew 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 Royal Unibrew AS are associated (or correlated) with Carlsberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlsberg AS has no effect on the direction of Royal Unibrew i.e., Royal Unibrew and Carlsberg go up and down completely randomly.
Pair Corralation between Royal Unibrew and Carlsberg
Assuming the 90 days trading horizon Royal Unibrew AS is expected to generate 1.29 times more return on investment than Carlsberg. However, Royal Unibrew is 1.29 times more volatile than Carlsberg AS. It trades about 0.05 of its potential returns per unit of risk. Carlsberg AS is currently generating about -0.03 per unit of risk. If you would invest 43,947 in Royal Unibrew AS on August 25, 2024 and sell it today you would earn a total of 8,853 from holding Royal Unibrew AS or generate 20.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Royal Unibrew AS vs. Carlsberg AS
Performance |
| Timeline |
| Royal Unibrew AS |
| Carlsberg AS |
Royal Unibrew and Carlsberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Royal Unibrew and Carlsberg
The main advantage of trading using opposite Royal Unibrew and Carlsberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Royal Unibrew position performs unexpectedly, Carlsberg 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 Carlsberg will offset losses from the drop in Carlsberg's long position.| Royal Unibrew vs. ROCKWOOL International AS | Royal Unibrew vs. Tryg AS | Royal Unibrew vs. DSV Panalpina AS | Royal Unibrew vs. GN Store Nord |
| Carlsberg vs. Formuepleje Mix Medium | Carlsberg vs. Fynske Bank AS | Carlsberg vs. Moens Bank AS | Carlsberg vs. BankInv GloAkColum Threadndl |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |