Correlation Between Jyske Bank and Gamma Communications
Can any of the company-specific risk be diversified away by investing in both Jyske Bank and Gamma Communications 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 Jyske Bank and Gamma Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jyske Bank AS and Gamma Communications PLC, you can compare the effects of market volatilities on Jyske Bank and Gamma Communications 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 Jyske Bank with a short position of Gamma Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jyske Bank and Gamma Communications.
Diversification Opportunities for Jyske Bank and Gamma Communications
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jyske and Gamma is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Jyske Bank AS and Gamma Communications PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamma Communications PLC and Jyske Bank 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 Jyske Bank AS are associated (or correlated) with Gamma Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamma Communications PLC has no effect on the direction of Jyske Bank i.e., Jyske Bank and Gamma Communications go up and down completely randomly.
Pair Corralation between Jyske Bank and Gamma Communications
Assuming the 90 days trading horizon Jyske Bank AS is expected to generate 0.84 times more return on investment than Gamma Communications. However, Jyske Bank AS is 1.2 times less risky than Gamma Communications. It trades about 0.02 of its potential returns per unit of risk. Gamma Communications PLC is currently generating about -0.03 per unit of risk. If you would invest 51,052 in Jyske Bank AS on November 3, 2024 and sell it today you would earn a total of 1,173 from holding Jyske Bank AS or generate 2.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jyske Bank AS vs. Gamma Communications PLC
Performance |
| Timeline |
| Jyske Bank AS |
| Gamma Communications PLC |
Jyske Bank and Gamma Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jyske Bank and Gamma Communications
The main advantage of trading using opposite Jyske Bank and Gamma Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jyske Bank position performs unexpectedly, Gamma Communications 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 Gamma Communications will offset losses from the drop in Gamma Communications' long position.| Jyske Bank vs. European Metals Holdings | Jyske Bank vs. Premier Foods PLC | Jyske Bank vs. JB Hunt Transport | Jyske Bank vs. Endeavour Mining Corp |
| Gamma Communications vs. Broadridge Financial Solutions | Gamma Communications vs. Gruppo MutuiOnline SpA | Gamma Communications vs. TechnipFMC PLC | Gamma Communications vs. Allianz Technology Trust |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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