Correlation Between Copenhagen Capital and Movinn AS

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

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

Diversification Opportunities for Copenhagen Capital and Movinn AS

0.07

Correlation Coefficient

Copenhagen Capital  Movinn AS

Significant diversification

The 3 months correlation between Copenhagen and Movinn is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Copenhagen Capital AS and Movinn AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Movinn AS and Copenhagen Capital 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 Copenhagen Capital AS are associated (or correlated) with Movinn AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Movinn AS has no effect on the direction of Copenhagen Capital i.e., Copenhagen Capital and Movinn AS go up and down completely randomly.

Pair Corralation between Copenhagen Capital and Movinn AS

Assuming the 90 days trading horizon Copenhagen Capital AS is expected to generate 0.64 times more return on investment than Movinn AS. However, Copenhagen Capital AS is 1.57 times less risky than Movinn AS. It trades about 0.02 of its potential returns per unit of risk. Movinn AS is currently generating about -0.13 per unit of risk. If you would invest  505.00  in Copenhagen Capital AS on October 6, 2024 and sell it today you would earn a total of  5.00  from holding Copenhagen Capital AS or generate 0.99% return on investment over 90 days.

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

Copenhagen Capital AS  vs.  Movinn AS

Copenhagen Capital

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Copenhagen Capital AS are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Copenhagen Capital is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Movinn AS

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Copenhagen Capital and Movinn AS

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

The idea behind Copenhagen Capital AS and Movinn AS 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.