Correlation Between DIVIDEND GROWTH and Carlsberg A/S

Can any of the company-specific risk be diversified away by investing in both DIVIDEND GROWTH 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 DIVIDEND GROWTH 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 DIVIDEND GROWTH SPLIT and Carlsberg AS, you can compare the effects of market volatilities on DIVIDEND GROWTH 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 DIVIDEND GROWTH with a short position of Carlsberg A/S. Check out your portfolio center. Please also check ongoing floating volatility patterns of DIVIDEND GROWTH and Carlsberg A/S.

Diversification Opportunities for DIVIDEND GROWTH and Carlsberg A/S

-0.81

Correlation Coefficient

DIVIDEND GROWTH  Carlsberg A/S

Pay attention - limited upside

The 3 months correlation between DIVIDEND and Carlsberg is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding DIVIDEND GROWTH SPLIT and Carlsberg AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlsberg A/S and DIVIDEND GROWTH 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 DIVIDEND GROWTH SPLIT 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 DIVIDEND GROWTH i.e., DIVIDEND GROWTH and Carlsberg A/S go up and down completely randomly.

Pair Corralation between DIVIDEND GROWTH and Carlsberg A/S

Assuming the 90 days horizon DIVIDEND GROWTH SPLIT is expected to generate 1.6 times more return on investment than Carlsberg A/S. However, DIVIDEND GROWTH is 1.6 times more volatile than Carlsberg AS. It trades about 0.12 of its potential returns per unit of risk. Carlsberg AS is currently generating about -0.11 per unit of risk. If you would invest  388.00  in DIVIDEND GROWTH SPLIT on September 5, 2024 and sell it today you would earn a total of  86.00  from holding DIVIDEND GROWTH SPLIT or generate 22.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.46%
Values	Daily Returns

DIVIDEND GROWTH SPLIT  vs.  Carlsberg AS

DIVIDEND GROWTH SPLIT

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in DIVIDEND GROWTH SPLIT are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, DIVIDEND GROWTH reported solid returns over the last few months and may actually be approaching a breakup point.

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 fragile performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with DIVIDEND GROWTH and Carlsberg A/S

The main advantage of trading using opposite DIVIDEND GROWTH and Carlsberg A/S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DIVIDEND GROWTH 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 DIVIDEND GROWTH SPLIT 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.