Correlation Between Sparinvest INDEX and CBrain AS
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By analyzing existing cross correlation between Sparinvest INDEX Globale and cBrain AS, you can compare the effects of market volatilities on Sparinvest INDEX and CBrain AS 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 Sparinvest INDEX with a short position of CBrain AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sparinvest INDEX and CBrain AS.
Diversification Opportunities for Sparinvest INDEX and CBrain AS
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sparinvest and CBrain is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Sparinvest INDEX Globale and cBrain AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on cBrain AS and Sparinvest INDEX 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 Sparinvest INDEX Globale are associated (or correlated) with CBrain AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of cBrain AS has no effect on the direction of Sparinvest INDEX i.e., Sparinvest INDEX and CBrain AS go up and down completely randomly.
Pair Corralation between Sparinvest INDEX and CBrain AS
Assuming the 90 days trading horizon Sparinvest INDEX Globale is expected to generate 0.21 times more return on investment than CBrain AS. However, Sparinvest INDEX Globale is 4.81 times less risky than CBrain AS. It trades about 0.05 of its potential returns per unit of risk. cBrain AS is currently generating about -0.01 per unit of risk. If you would invest 14,758 in Sparinvest INDEX Globale on October 25, 2024 and sell it today you would earn a total of 293.00 from holding Sparinvest INDEX Globale or generate 1.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sparinvest INDEX Globale vs. cBrain AS
Performance |
| Timeline |
| Sparinvest INDEX Globale |
| cBrain AS |
Sparinvest INDEX and CBrain AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sparinvest INDEX and CBrain AS
The main advantage of trading using opposite Sparinvest INDEX and CBrain AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sparinvest INDEX position performs unexpectedly, CBrain AS 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 CBrain AS will offset losses from the drop in CBrain AS's long position.| Sparinvest INDEX vs. Sparinvest Lange | Sparinvest INDEX vs. Sparinvest Value Emerging | Sparinvest INDEX vs. Sparinvest Europa Growth | Sparinvest INDEX vs. Sparinvest INDEX Europa |
| CBrain AS vs. ChemoMetec AS | CBrain AS vs. Ambu AS | CBrain AS vs. Genmab AS | CBrain AS vs. Zealand Pharma AS |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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