Correlation Between CALTAGIRONE EDITORE and Carlsberg A/S

Can any of the company-specific risk be diversified away by investing in both CALTAGIRONE EDITORE and Carlsberg A/S 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 CALTAGIRONE EDITORE and Carlsberg A/S into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CALTAGIRONE EDITORE and Carlsberg AS, you can compare the effects of market volatilities on CALTAGIRONE EDITORE and Carlsberg A/S 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 CALTAGIRONE EDITORE with a short position of Carlsberg A/S. Check out your portfolio center. Please also check ongoing floating volatility patterns of CALTAGIRONE EDITORE and Carlsberg A/S.

Diversification Opportunities for CALTAGIRONE EDITORE and Carlsberg A/S

-0.75

Correlation Coefficient

CALTAGIRONE EDITORE  Carlsberg A/S

Pay attention - limited upside

The 3 months correlation between CALTAGIRONE and Carlsberg is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding CALTAGIRONE EDITORE and Carlsberg AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlsberg A/S and CALTAGIRONE EDITORE 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 CALTAGIRONE EDITORE are associated (or correlated) with Carlsberg A/S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlsberg A/S has no effect on the direction of CALTAGIRONE EDITORE i.e., CALTAGIRONE EDITORE and Carlsberg A/S go up and down completely randomly.

Pair Corralation between CALTAGIRONE EDITORE and Carlsberg A/S

Assuming the 90 days trading horizon CALTAGIRONE EDITORE is expected to under-perform the Carlsberg A/S. In addition to that, CALTAGIRONE EDITORE is 1.76 times more volatile than Carlsberg AS. It trades about -0.14 of its total potential returns per unit of risk. Carlsberg AS is currently generating about -0.19 per unit of volatility. If you would invest  9,646  in Carlsberg AS on October 8, 2024 and sell it today you would lose (322.00) from holding Carlsberg AS or give up 3.34% of portfolio value over 90 days.

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

CALTAGIRONE EDITORE  vs.  Carlsberg AS

CALTAGIRONE EDITORE

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CALTAGIRONE EDITORE are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, CALTAGIRONE EDITORE may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Carlsberg A/S

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Carlsberg AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with CALTAGIRONE EDITORE and Carlsberg A/S

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

The idea behind CALTAGIRONE EDITORE and Carlsberg 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.