Correlation Between Carlsberg and BankIn Bredygt

Can any of the company-specific risk be diversified away by investing in both Carlsberg and BankIn Bredygt 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 Carlsberg and BankIn Bredygt into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Carlsberg AS and BankIn Bredygt Klimaakt, you can compare the effects of market volatilities on Carlsberg and BankIn Bredygt 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 Carlsberg with a short position of BankIn Bredygt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlsberg and BankIn Bredygt.

Diversification Opportunities for Carlsberg and BankIn Bredygt

-0.72

Correlation Coefficient

Carlsberg  BankIn Bredygt

Pay attention - limited upside

The 3 months correlation between Carlsberg and BankIn is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Carlsberg AS and BankIn Bredygt Klimaakt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankIn Bredygt Klimaakt and Carlsberg 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 Carlsberg AS are associated (or correlated) with BankIn Bredygt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankIn Bredygt Klimaakt has no effect on the direction of Carlsberg i.e., Carlsberg and BankIn Bredygt go up and down completely randomly.

Pair Corralation between Carlsberg and BankIn Bredygt

Assuming the 90 days trading horizon Carlsberg AS is expected to generate 1.77 times more return on investment than BankIn Bredygt. However, Carlsberg is 1.77 times more volatile than BankIn Bredygt Klimaakt. It trades about 0.19 of its potential returns per unit of risk. BankIn Bredygt Klimaakt is currently generating about -0.25 per unit of risk. If you would invest  75,540  in Carlsberg AS on December 1, 2024 and sell it today you would earn a total of  14,600  from holding Carlsberg AS or generate 19.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	60.0%
Values	Daily Returns

Carlsberg AS  vs.  BankIn Bredygt Klimaakt

Carlsberg AS

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Carlsberg AS are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Carlsberg sustained solid returns over the last few months and may actually be approaching a breakup point.

BankIn Bredygt Klimaakt

Risk-Adjusted Performance

Very Weak

Over the last 90 days BankIn Bredygt Klimaakt has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Carlsberg and BankIn Bredygt

The main advantage of trading using opposite Carlsberg and BankIn Bredygt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlsberg position performs unexpectedly, BankIn Bredygt 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 BankIn Bredygt will offset losses from the drop in BankIn Bredygt's long position.

The idea behind Carlsberg AS and BankIn Bredygt Klimaakt pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.