Correlation Between CBrain AS and Cantargia

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

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

Diversification Opportunities for CBrain AS and Cantargia

0.47

Correlation Coefficient

CBrain AS  Cantargia

Very weak diversification

The 3 months correlation between CBrain and Cantargia is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding cBrain AS and Cantargia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cantargia AB and CBrain 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 cBrain AS are associated (or correlated) with Cantargia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cantargia AB has no effect on the direction of CBrain AS i.e., CBrain AS and Cantargia go up and down completely randomly.

Pair Corralation between CBrain AS and Cantargia

Assuming the 90 days trading horizon cBrain AS is expected to under-perform the Cantargia. In addition to that, CBrain AS is 1.31 times more volatile than Cantargia AB. It trades about -0.14 of its total potential returns per unit of risk. Cantargia AB is currently generating about -0.01 per unit of volatility. If you would invest  181.00  in Cantargia AB on December 2, 2024 and sell it today you would lose (9.00) from holding Cantargia AB or give up 4.97% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.36%
Values	Daily Returns

cBrain AS  vs.  Cantargia AB

cBrain AS

Risk-Adjusted Performance

Very Weak

Over the last 90 days cBrain AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic 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.

Cantargia AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cantargia AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Cantargia is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with CBrain AS and Cantargia

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

The idea behind cBrain AS and Cantargia AB 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.