Correlation Between Spar Nord and CBrain AS
Can any of the company-specific risk be diversified away by investing in both Spar Nord and CBrain AS 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 Spar Nord and CBrain AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spar Nord Bank and cBrain AS, you can compare the effects of market volatilities on Spar Nord 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 Spar Nord with a short position of CBrain AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spar Nord and CBrain AS.
Diversification Opportunities for Spar Nord and CBrain AS
Very good diversification
The 3 months correlation between Spar and CBrain is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Spar Nord Bank and cBrain AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on cBrain AS and Spar Nord 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 Spar Nord Bank 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 Spar Nord i.e., Spar Nord and CBrain AS go up and down completely randomly.
Pair Corralation between Spar Nord and CBrain AS
Assuming the 90 days trading horizon Spar Nord is expected to generate 641.25 times less return on investment than CBrain AS. But when comparing it to its historical volatility, Spar Nord Bank is 11.01 times less risky than CBrain AS. It trades about 0.0 of its potential returns per unit of risk. cBrain AS is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 18,580 in cBrain AS on October 26, 2024 and sell it today you would earn a total of 700.00 from holding cBrain AS or generate 3.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spar Nord Bank vs. cBrain AS
Performance |
| Timeline |
| Spar Nord Bank |
| cBrain AS |
Spar Nord and CBrain AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spar Nord and CBrain AS
The main advantage of trading using opposite Spar Nord and CBrain AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spar Nord 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.| Spar Nord vs. Sydbank AS | Spar Nord vs. Jyske Bank AS | Spar Nord vs. Alm Brand | Spar Nord vs. Nordea Bank Abp |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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