Correlation Between ROCKWOOL International and Royal Unibrew
Can any of the company-specific risk be diversified away by investing in both ROCKWOOL International and Royal Unibrew 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 ROCKWOOL International and Royal Unibrew into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ROCKWOOL International AS and Royal Unibrew AS, you can compare the effects of market volatilities on ROCKWOOL International and Royal Unibrew 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 ROCKWOOL International with a short position of Royal Unibrew. Check out your portfolio center. Please also check ongoing floating volatility patterns of ROCKWOOL International and Royal Unibrew.
Diversification Opportunities for ROCKWOOL International and Royal Unibrew
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between ROCKWOOL and Royal is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding ROCKWOOL International AS and Royal Unibrew AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Royal Unibrew AS and ROCKWOOL International 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 ROCKWOOL International AS are associated (or correlated) with Royal Unibrew. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Royal Unibrew AS has no effect on the direction of ROCKWOOL International i.e., ROCKWOOL International and Royal Unibrew go up and down completely randomly.
Pair Corralation between ROCKWOOL International and Royal Unibrew
Assuming the 90 days trading horizon ROCKWOOL International AS is expected to under-perform the Royal Unibrew. In addition to that, ROCKWOOL International is 1.34 times more volatile than Royal Unibrew AS. It trades about -0.02 of its total potential returns per unit of risk. Royal Unibrew AS is currently generating about -0.03 per unit of volatility. If you would invest 57,138 in Royal Unibrew AS on September 3, 2024 and sell it today you would lose (3,988) from holding Royal Unibrew AS or give up 6.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ROCKWOOL International AS vs. Royal Unibrew AS
Performance |
| Timeline |
| ROCKWOOL International |
| Royal Unibrew AS |
ROCKWOOL International and Royal Unibrew Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ROCKWOOL International and Royal Unibrew
The main advantage of trading using opposite ROCKWOOL International and Royal Unibrew positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ROCKWOOL International position performs unexpectedly, Royal Unibrew 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 Royal Unibrew will offset losses from the drop in Royal Unibrew's long position.| ROCKWOOL International vs. ROCKWOOL International AS | ROCKWOOL International vs. FLSmidth Co | ROCKWOOL International vs. Royal Unibrew AS | ROCKWOOL International vs. Tryg AS |
| Royal Unibrew vs. ROCKWOOL International AS | Royal Unibrew vs. Tryg AS | Royal Unibrew vs. DSV Panalpina AS | Royal Unibrew vs. GN Store Nord |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |