Correlation Between BAIGAI and DKINYM
Can any of the company-specific risk be diversified away by investing in both BAIGAI and DKINYM 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 BAIGAI and DKINYM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investeringsforeningen Bankinvest and Investeringsforeningen Danske Invest, you can compare the effects of market volatilities on BAIGAI and DKINYM 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 BAIGAI with a short position of DKINYM. Check out your portfolio center. Please also check ongoing floating volatility patterns of BAIGAI and DKINYM.
Diversification Opportunities for BAIGAI and DKINYM
Good diversification
The 3 months correlation between BAIGAI and DKINYM is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Investeringsforeningen Bankinv and Investeringsforeningen Danske in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investeringsforeningen and BAIGAI 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 Investeringsforeningen Bankinvest are associated (or correlated) with DKINYM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investeringsforeningen has no effect on the direction of BAIGAI i.e., BAIGAI and DKINYM go up and down completely randomly.
Pair Corralation between BAIGAI and DKINYM
Assuming the 90 days trading horizon Investeringsforeningen Bankinvest is expected to generate 1.27 times more return on investment than DKINYM. However, BAIGAI is 1.27 times more volatile than Investeringsforeningen Danske Invest. It trades about 0.22 of its potential returns per unit of risk. Investeringsforeningen Danske Invest is currently generating about -0.04 per unit of risk. If you would invest 14,546 in Investeringsforeningen Bankinvest on November 4, 2024 and sell it today you would earn a total of 481.00 from holding Investeringsforeningen Bankinvest or generate 3.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Investeringsforeningen Bankinv vs. Investeringsforeningen Danske
Performance |
| Timeline |
| Investeringsforeningen |
| Investeringsforeningen |
BAIGAI and DKINYM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BAIGAI and DKINYM
The main advantage of trading using opposite BAIGAI and DKINYM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BAIGAI position performs unexpectedly, DKINYM 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 DKINYM will offset losses from the drop in DKINYM's long position.The idea behind Investeringsforeningen Bankinvest and Investeringsforeningen Danske Invest pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| DKINYM vs. Sparinvest Lange | DKINYM vs. Investeringsforeningen Danske Invest | DKINYM vs. Sparinv SICAV | DKINYM vs. Sparinvest Value Emerging |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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