Two Equities Correlation Analysis

This model provides you with a quick lookup of cross correlation between two equities. Please specify two instruments to run the correlation.

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Can any of the company-specific risk be diversified away by investing in both Bang Olufsen and DOW at the same time? Although using correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combing Bang Olufsen and DOW into the same portfolio which is an essential part of fundamental portfolio management process.

Diversification Opportunities for Bang Olufsen and DOW

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Correlation
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DOW

Pay attention - limited upside

The 3 months correlation between Bang Olufsen and DOW is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bang Olufsen Holding AS and DOW in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on DOW and Bang Olufsen 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 Bang Olufsen Holding are associated (or correlated) with DOW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOW has no effect on the direction of Bang Olufsen i.e. Bang Olufsen and DOW go up and down completely randomly.
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Pair Corralation between Bang Olufsen and DOW

If you would invest  2,385,102  in DOW on May 7, 2020 and sell it today you would earn a total of  325,996  from holding DOW or generate 13.67% return on investment over 30 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Bang Olufsen Holding AS  vs.  DOW

 Performance (%) 
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