Correlation Between BankInv GloAkColum and Nordfyns Bank
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By analyzing existing cross correlation between BankInv GloAkColum Threadndl and Nordfyns Bank AS, you can compare the effects of market volatilities on BankInv GloAkColum and Nordfyns Bank 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 BankInv GloAkColum with a short position of Nordfyns Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankInv GloAkColum and Nordfyns Bank.
Diversification Opportunities for BankInv GloAkColum and Nordfyns Bank
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BankInv and Nordfyns is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding BankInv GloAkColum Threadndl and Nordfyns Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordfyns Bank AS and BankInv GloAkColum 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 BankInv GloAkColum Threadndl are associated (or correlated) with Nordfyns Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordfyns Bank AS has no effect on the direction of BankInv GloAkColum i.e., BankInv GloAkColum and Nordfyns Bank go up and down completely randomly.
Pair Corralation between BankInv GloAkColum and Nordfyns Bank
Assuming the 90 days trading horizon BankInv GloAkColum Threadndl is expected to generate 1.39 times more return on investment than Nordfyns Bank. However, BankInv GloAkColum is 1.39 times more volatile than Nordfyns Bank AS. It trades about 0.27 of its potential returns per unit of risk. Nordfyns Bank AS is currently generating about -0.5 per unit of risk. If you would invest 13,785 in BankInv GloAkColum Threadndl on September 1, 2024 and sell it today you would earn a total of 475.00 from holding BankInv GloAkColum Threadndl or generate 3.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 63.64% |
| Values | Daily Returns |
BankInv GloAkColum Threadndl vs. Nordfyns Bank AS
Performance |
| Timeline |
| BankInv GloAkColum |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Nordfyns Bank AS |
BankInv GloAkColum and Nordfyns Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BankInv GloAkColum and Nordfyns Bank
The main advantage of trading using opposite BankInv GloAkColum and Nordfyns Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankInv GloAkColum position performs unexpectedly, Nordfyns Bank 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 Nordfyns Bank will offset losses from the drop in Nordfyns Bank's long position.| BankInv GloAkColum vs. Novo Nordisk AS | BankInv GloAkColum vs. Nordea Bank Abp | BankInv GloAkColum vs. DSV Panalpina AS | BankInv GloAkColum vs. AP Mller |
| Nordfyns Bank vs. Skjern Bank AS | Nordfyns Bank vs. Lollands Bank | Nordfyns Bank vs. Djurslands Bank | Nordfyns Bank vs. Moens Bank AS |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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