Correlation Between Tryg AS and Carlsberg
Can any of the company-specific risk be diversified away by investing in both Tryg AS and Carlsberg 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 Tryg AS and Carlsberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tryg AS and Carlsberg AS, you can compare the effects of market volatilities on Tryg AS and Carlsberg 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 Tryg AS with a short position of Carlsberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tryg AS and Carlsberg.
Diversification Opportunities for Tryg AS and Carlsberg
Good diversification
The 3 months correlation between Tryg and Carlsberg is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Tryg AS and Carlsberg AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlsberg AS and Tryg AS 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 Tryg AS are associated (or correlated) with Carlsberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlsberg AS has no effect on the direction of Tryg AS i.e., Tryg AS and Carlsberg go up and down completely randomly.
Pair Corralation between Tryg AS and Carlsberg
Assuming the 90 days trading horizon Tryg AS is expected to generate 0.47 times more return on investment than Carlsberg. However, Tryg AS is 2.14 times less risky than Carlsberg. It trades about 0.19 of its potential returns per unit of risk. Carlsberg AS is currently generating about -0.02 per unit of risk. If you would invest 13,577 in Tryg AS on March 13, 2024 and sell it today you would earn a total of 823.00 from holding Tryg AS or generate 6.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Tryg AS vs. Carlsberg AS
Performance |
Timeline |
Tryg AS |
Carlsberg AS |
Tryg AS and Carlsberg Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tryg AS and Carlsberg
The main advantage of trading using opposite Tryg AS and Carlsberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tryg AS position performs unexpectedly, Carlsberg 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 Carlsberg will offset losses from the drop in Carlsberg's long position.Tryg AS vs. Topdanmark AS | Tryg AS vs. FLSmidth Co | Tryg AS vs. Danske Bank AS | Tryg AS vs. DSV Panalpina AS |
Carlsberg vs. AP Mller | Carlsberg vs. ROCKWOOL International AS | Carlsberg vs. Royal Unibrew AS | Carlsberg vs. Tryg 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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