Correlation Between Vow Green and Cambi ASA
Can any of the company-specific risk be diversified away by investing in both Vow Green and Cambi ASA 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 Vow Green and Cambi ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vow Green Metals and Cambi ASA, you can compare the effects of market volatilities on Vow Green and Cambi ASA 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 Vow Green with a short position of Cambi ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vow Green and Cambi ASA.
Diversification Opportunities for Vow Green and Cambi ASA
Good diversification
The 3 months correlation between Vow and Cambi is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Vow Green Metals and Cambi ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambi ASA and Vow Green 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 Vow Green Metals are associated (or correlated) with Cambi ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambi ASA has no effect on the direction of Vow Green i.e., Vow Green and Cambi ASA go up and down completely randomly.
Pair Corralation between Vow Green and Cambi ASA
Assuming the 90 days trading horizon Vow Green Metals is expected to under-perform the Cambi ASA. In addition to that, Vow Green is 2.36 times more volatile than Cambi ASA. It trades about -0.04 of its total potential returns per unit of risk. Cambi ASA is currently generating about 0.02 per unit of volatility. If you would invest 1,397 in Cambi ASA on September 12, 2024 and sell it today you would earn a total of 43.00 from holding Cambi ASA or generate 3.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vow Green Metals vs. Cambi ASA
Performance |
| Timeline |
| Vow Green Metals |
| Cambi ASA |
Vow Green and Cambi ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vow Green and Cambi ASA
The main advantage of trading using opposite Vow Green and Cambi ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vow Green position performs unexpectedly, Cambi ASA 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 Cambi ASA will offset losses from the drop in Cambi ASA's long position.| Vow Green vs. Waste Plastic Upcycling | Vow Green vs. Kongsberg Gruppen ASA | Vow Green vs. Napatech AS | Vow Green vs. Elkem ASA |
| Cambi ASA vs. Aker Horizons AS | Cambi ASA vs. Hexagon Purus As | Cambi ASA vs. Huddly AS | Cambi ASA vs. Everfuel 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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