Correlation Between Ringkjoebing Landbobank and Cessatech
Can any of the company-specific risk be diversified away by investing in both Ringkjoebing Landbobank and Cessatech 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 Ringkjoebing Landbobank and Cessatech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ringkjoebing Landbobank AS and Cessatech AS, you can compare the effects of market volatilities on Ringkjoebing Landbobank and Cessatech 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 Ringkjoebing Landbobank with a short position of Cessatech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ringkjoebing Landbobank and Cessatech.
Diversification Opportunities for Ringkjoebing Landbobank and Cessatech
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ringkjoebing and Cessatech is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Ringkjoebing Landbobank AS and Cessatech AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cessatech AS and Ringkjoebing Landbobank 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 Ringkjoebing Landbobank AS are associated (or correlated) with Cessatech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cessatech AS has no effect on the direction of Ringkjoebing Landbobank i.e., Ringkjoebing Landbobank and Cessatech go up and down completely randomly.
Pair Corralation between Ringkjoebing Landbobank and Cessatech
Assuming the 90 days trading horizon Ringkjoebing Landbobank AS is expected to generate 0.29 times more return on investment than Cessatech. However, Ringkjoebing Landbobank AS is 3.47 times less risky than Cessatech. It trades about 0.06 of its potential returns per unit of risk. Cessatech AS is currently generating about -0.04 per unit of risk. If you would invest 96,916 in Ringkjoebing Landbobank AS on September 1, 2024 and sell it today you would earn a total of 18,084 from holding Ringkjoebing Landbobank AS or generate 18.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 7.78% |
| Values | Daily Returns |
Ringkjoebing Landbobank AS vs. Cessatech AS
Performance |
| Timeline |
| Ringkjoebing Landbobank |
| Cessatech AS |
Ringkjoebing Landbobank and Cessatech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ringkjoebing Landbobank and Cessatech
The main advantage of trading using opposite Ringkjoebing Landbobank and Cessatech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ringkjoebing Landbobank position performs unexpectedly, Cessatech 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 Cessatech will offset losses from the drop in Cessatech's long position.| Ringkjoebing Landbobank vs. Sydbank AS | Ringkjoebing Landbobank vs. Jyske Bank AS | Ringkjoebing Landbobank vs. Royal Unibrew AS | Ringkjoebing Landbobank vs. Spar Nord Bank |
| Cessatech vs. Novo Nordisk AS | Cessatech vs. Nordea Bank Abp | Cessatech vs. DSV Panalpina AS | Cessatech vs. AP Mller |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |