Correlation Between CBrain AS and Jyske Invest

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

By analyzing existing cross correlation between cBrain AS and Jyske Invest Virksomhedsobligationer, you can compare the effects of market volatilities on CBrain AS and Jyske Invest 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 Jyske Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBrain AS and Jyske Invest.

Diversification Opportunities for CBrain AS and Jyske Invest

0.21

Correlation Coefficient

CBrain AS  Jyske Invest

Modest diversification

The 3 months correlation between CBrain and Jyske is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding cBrain AS and Jyske Invest Virksomhedsobliga in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jyske Invest Virksom 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 Jyske Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jyske Invest Virksom has no effect on the direction of CBrain AS i.e., CBrain AS and Jyske Invest go up and down completely randomly.

Pair Corralation between CBrain AS and Jyske Invest

Assuming the 90 days trading horizon cBrain AS is expected to generate 15.21 times more return on investment than Jyske Invest. However, CBrain AS is 15.21 times more volatile than Jyske Invest Virksomhedsobligationer. It trades about 0.16 of its potential returns per unit of risk. Jyske Invest Virksomhedsobligationer is currently generating about 0.02 per unit of risk. If you would invest  18,480  in cBrain AS on October 23, 2024 and sell it today you would earn a total of  1,460  from holding cBrain AS or generate 7.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

cBrain AS  vs.  Jyske Invest Virksomhedsobliga

cBrain AS

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days cBrain AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, CBrain AS is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Jyske Invest Virksom

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Jyske Invest Virksomhedsobligationer are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Jyske Invest is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with CBrain AS and Jyske Invest

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

The idea behind cBrain AS and Jyske Invest Virksomhedsobligationer 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.