Correlation Between Cadeler AS and Graham Holdings

Specify exactly 2 symbols:
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 Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy52.82%
ValuesDaily Returns

Cadeler AS  vs.  Graham Holdings Co

 Performance 
       Timeline  
Cadeler AS 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Cadeler AS has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's essential indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.
Graham Holdings 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Graham Holdings Co are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical indicators, Graham Holdings may actually be approaching a critical reversion point that can send shares even higher in February 2025.

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.
The idea behind Cadeler AS and Graham Holdings Co 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.
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.

Other Complementary Tools

Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm