Correlation Between BankInvest Emerging and Maj Invest
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By analyzing existing cross correlation between BankInvest Emerging and Maj Invest Emerging, you can compare the effects of market volatilities on BankInvest Emerging and Maj 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 BankInvest Emerging with a short position of Maj Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankInvest Emerging and Maj Invest.
Diversification Opportunities for BankInvest Emerging and Maj Invest
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BankInvest and Maj is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding BankInvest Emerging and Maj Invest Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maj Invest Emerging and BankInvest Emerging 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 BankInvest Emerging are associated (or correlated) with Maj Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maj Invest Emerging has no effect on the direction of BankInvest Emerging i.e., BankInvest Emerging and Maj Invest go up and down completely randomly.
Pair Corralation between BankInvest Emerging and Maj Invest
Assuming the 90 days trading horizon BankInvest Emerging is expected to generate 4.9 times less return on investment than Maj Invest. But when comparing it to its historical volatility, BankInvest Emerging is 4.84 times less risky than Maj Invest. It trades about 0.11 of its potential returns per unit of risk. Maj Invest Emerging is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 10,978 in Maj Invest Emerging on September 12, 2024 and sell it today you would earn a total of 972.00 from holding Maj Invest Emerging or generate 8.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BankInvest Emerging vs. Maj Invest Emerging
Performance |
| Timeline |
| BankInvest Emerging |
| Maj Invest Emerging |
BankInvest Emerging and Maj Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BankInvest Emerging and Maj Invest
The main advantage of trading using opposite BankInvest Emerging and Maj Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankInvest Emerging position performs unexpectedly, Maj 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 Maj Invest will offset losses from the drop in Maj Invest's long position.| BankInvest Emerging vs. BankInvest Emerging | BankInvest Emerging vs. BankInvest Lange Danske | BankInvest Emerging vs. BankInvest Hjt | BankInvest Emerging vs. BankInvest Danske |
| Maj Invest vs. Bavarian Nordic | Maj Invest vs. Investeringsselskabet Luxor AS | Maj Invest vs. cBrain AS | Maj Invest vs. Fast Ejendom |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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