Correlation Between Jyske Bank and MediaZest Plc
Can any of the company-specific risk be diversified away by investing in both Jyske Bank and MediaZest Plc 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 MediaZest Plc 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 MediaZest plc, you can compare the effects of market volatilities on Jyske Bank and MediaZest Plc 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 MediaZest Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jyske Bank and MediaZest Plc.
Diversification Opportunities for Jyske Bank and MediaZest Plc
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jyske and MediaZest is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jyske Bank AS and MediaZest plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MediaZest 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 MediaZest Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MediaZest plc has no effect on the direction of Jyske Bank i.e., Jyske Bank and MediaZest Plc go up and down completely randomly.
Pair Corralation between Jyske Bank and MediaZest Plc
Assuming the 90 days trading horizon Jyske Bank AS is expected to generate 1.32 times more return on investment than MediaZest Plc. However, Jyske Bank is 1.32 times more volatile than MediaZest plc. It trades about 0.38 of its potential returns per unit of risk. MediaZest plc is currently generating about 0.35 per unit of risk. If you would invest 48,660 in Jyske Bank AS on October 21, 2024 and sell it today you would earn a total of 4,540 from holding Jyske Bank AS or generate 9.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jyske Bank AS vs. MediaZest plc
Performance |
| Timeline |
| Jyske Bank AS |
| MediaZest plc |
Jyske Bank and MediaZest Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jyske Bank and MediaZest Plc
The main advantage of trading using opposite Jyske Bank and MediaZest Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jyske Bank position performs unexpectedly, MediaZest Plc 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 MediaZest Plc will offset losses from the drop in MediaZest Plc's long position.| Jyske Bank vs. Gamma Communications PLC | Jyske Bank vs. Ebro Foods | Jyske Bank vs. National Beverage Corp | Jyske Bank vs. MTI Wireless Edge |
| MediaZest Plc vs. Rightmove PLC | MediaZest Plc vs. Bioventix | MediaZest Plc vs. VeriSign | MediaZest Plc vs. Games Workshop Group |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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