Correlation Between Cadeler AS and Graham Holdings
Can any of the company-specific risk be diversified away by investing in both Cadeler AS and Graham Holdings 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 Cadeler AS and Graham Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cadeler AS and Graham Holdings Co, you can compare the effects of market volatilities on Cadeler AS and Graham Holdings 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 Cadeler AS with a short position of Graham Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cadeler AS and Graham Holdings.
Diversification Opportunities for Cadeler AS and Graham Holdings
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cadeler and Graham is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Cadeler AS and Graham Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graham Holdings and Cadeler 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 Cadeler AS are associated (or correlated) with Graham Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graham Holdings has no effect on the direction of Cadeler AS i.e., Cadeler AS and Graham Holdings go up and down completely randomly.
Pair Corralation between Cadeler AS and Graham Holdings
Given the investment horizon of 90 days Cadeler AS is expected to generate 1.23 times more return on investment than Graham Holdings. However, Cadeler AS is 1.23 times more volatile than Graham Holdings Co. It trades about 0.05 of its potential returns per unit of risk. Graham Holdings Co is currently generating about 0.05 per unit of risk. If you would invest 1,820 in Cadeler AS on October 11, 2024 and sell it today you would earn a total of 426.00 from holding Cadeler AS or generate 23.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 52.82% |
Values | Daily Returns |
Cadeler AS vs. Graham Holdings Co
Performance |
Timeline |
Cadeler AS |
Graham Holdings |
Cadeler AS and Graham Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cadeler AS and Graham Holdings
The main advantage of trading using opposite Cadeler AS and Graham Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cadeler AS position performs unexpectedly, Graham Holdings 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 Graham Holdings will offset losses from the drop in Graham Holdings' long position.Cadeler AS vs. Graham Holdings Co | Cadeler AS vs. Treasury Wine Estates | Cadeler AS vs. Constellation Brands Class | Cadeler AS vs. Brandywine Realty Trust |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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