Correlation Between Jyske Bank and Impax Environmental
Can any of the company-specific risk be diversified away by investing in both Jyske Bank and Impax Environmental 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 Impax Environmental 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 Impax Environmental Markets, you can compare the effects of market volatilities on Jyske Bank and Impax Environmental 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 Impax Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jyske Bank and Impax Environmental.
Diversification Opportunities for Jyske Bank and Impax Environmental
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jyske and Impax is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Jyske Bank AS and Impax Environmental Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impax Environmental 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 Impax Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impax Environmental has no effect on the direction of Jyske Bank i.e., Jyske Bank and Impax Environmental go up and down completely randomly.
Pair Corralation between Jyske Bank and Impax Environmental
Assuming the 90 days trading horizon Jyske Bank AS is expected to generate 1.22 times more return on investment than Impax Environmental. However, Jyske Bank is 1.22 times more volatile than Impax Environmental Markets. It trades about 0.26 of its potential returns per unit of risk. Impax Environmental Markets is currently generating about -0.14 per unit of risk. If you would invest 48,280 in Jyske Bank AS on September 14, 2024 and sell it today you would earn a total of 2,560 from holding Jyske Bank AS or generate 5.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jyske Bank AS vs. Impax Environmental Markets
Performance |
| Timeline |
| Jyske Bank AS |
| Impax Environmental |
Jyske Bank and Impax Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jyske Bank and Impax Environmental
The main advantage of trading using opposite Jyske Bank and Impax Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jyske Bank position performs unexpectedly, Impax Environmental 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 Impax Environmental will offset losses from the drop in Impax Environmental's long position.| Jyske Bank vs. Impax Environmental Markets | Jyske Bank vs. Symphony Environmental Technologies | Jyske Bank vs. Hansa Investment | Jyske Bank vs. Intuitive Investments Group |
| Impax Environmental vs. Trainline Plc | Impax Environmental vs. Vitec Software Group | Impax Environmental vs. EVS Broadcast Equipment | Impax Environmental vs. Iron Mountain |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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