Correlation Between Alefarm Brewing and Danske Invest
Can any of the company-specific risk be diversified away by investing in both Alefarm Brewing and Danske Invest 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 Alefarm Brewing and Danske Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alefarm Brewing AS and Danske Invest , you can compare the effects of market volatilities on Alefarm Brewing and Danske Invest 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 Alefarm Brewing with a short position of Danske Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alefarm Brewing and Danske Invest.
Diversification Opportunities for Alefarm Brewing and Danske Invest
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alefarm and Danske is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Alefarm Brewing AS and Danske Invest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Danske Invest and Alefarm Brewing 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 Alefarm Brewing AS are associated (or correlated) with Danske Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Danske Invest has no effect on the direction of Alefarm Brewing i.e., Alefarm Brewing and Danske Invest go up and down completely randomly.
Pair Corralation between Alefarm Brewing and Danske Invest
Assuming the 90 days trading horizon Alefarm Brewing AS is expected to under-perform the Danske Invest. In addition to that, Alefarm Brewing is 52.45 times more volatile than Danske Invest . It trades about -0.04 of its total potential returns per unit of risk. Danske Invest is currently generating about 0.11 per unit of volatility. If you would invest 9,388 in Danske Invest on October 25, 2024 and sell it today you would earn a total of 48.00 from holding Danske Invest or generate 0.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.33% |
| Values | Daily Returns |
Alefarm Brewing AS vs. Danske Invest
Performance |
| Timeline |
| Alefarm Brewing AS |
| Danske Invest |
Alefarm Brewing and Danske Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alefarm Brewing and Danske Invest
The main advantage of trading using opposite Alefarm Brewing and Danske Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alefarm Brewing position performs unexpectedly, Danske Invest 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 Danske Invest will offset losses from the drop in Danske Invest's long position.| Alefarm Brewing vs. Sparinvest INDEX Globale | Alefarm Brewing vs. Bavarian Nordic | Alefarm Brewing vs. Nordea Invest Global | Alefarm Brewing vs. Investeringsselskabet Luxor AS |
| Danske Invest vs. BankInvest Value Globale | Danske Invest vs. Lollands Bank | Danske Invest vs. Hvidbjerg Bank | Danske Invest vs. PARKEN Sport Entertainment |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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