Correlation Between Carlsberg A/S and US Bancorp
Can any of the company-specific risk be diversified away by investing in both Carlsberg A/S and US Bancorp 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 Carlsberg A/S and US Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlsberg AS and US Bancorp PERP, you can compare the effects of market volatilities on Carlsberg A/S and US Bancorp 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 Carlsberg A/S with a short position of US Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlsberg A/S and US Bancorp.
Diversification Opportunities for Carlsberg A/S and US Bancorp
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Carlsberg and USB-PA is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Carlsberg AS and US Bancorp PERP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Bancorp PERP and Carlsberg A/S 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 Carlsberg AS are associated (or correlated) with US Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Bancorp PERP has no effect on the direction of Carlsberg A/S i.e., Carlsberg A/S and US Bancorp go up and down completely randomly.
Pair Corralation between Carlsberg A/S and US Bancorp
Assuming the 90 days horizon Carlsberg AS is expected to generate 2.24 times more return on investment than US Bancorp. However, Carlsberg A/S is 2.24 times more volatile than US Bancorp PERP. It trades about 0.03 of its potential returns per unit of risk. US Bancorp PERP is currently generating about 0.05 per unit of risk. If you would invest 11,539 in Carlsberg AS on January 25, 2024 and sell it today you would earn a total of 2,156 from holding Carlsberg AS or generate 18.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Carlsberg AS vs. US Bancorp PERP
Performance |
Timeline |
Carlsberg A/S |
US Bancorp PERP |
Carlsberg A/S and US Bancorp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Carlsberg A/S and US Bancorp
The main advantage of trading using opposite Carlsberg A/S and US Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlsberg A/S position performs unexpectedly, US Bancorp 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 US Bancorp will offset losses from the drop in US Bancorp's long position.Carlsberg A/S vs. Barfresh Food Group | Carlsberg A/S vs. Fbec Worldwide | Carlsberg A/S vs. Flow Beverage Corp | Carlsberg A/S vs. Eq Energy Drink |
US Bancorp vs. KeyCorp | US Bancorp vs. Regions Financial | US Bancorp vs. US Bancorp | US Bancorp vs. KeyCorp |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |