Correlation Between BankInvest Basis and Alm Brand
Can any of the company-specific risk be diversified away by investing in both BankInvest Basis and Alm Brand 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 BankInvest Basis and Alm Brand into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BankInvest Basis and Alm Brand Invest, you can compare the effects of market volatilities on BankInvest Basis and Alm Brand 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 Basis with a short position of Alm Brand. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankInvest Basis and Alm Brand.
Diversification Opportunities for BankInvest Basis and Alm Brand
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BankInvest and Alm is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BankInvest Basis and Alm Brand Invest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alm Brand Invest and BankInvest Basis 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 Basis are associated (or correlated) with Alm Brand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alm Brand Invest has no effect on the direction of BankInvest Basis i.e., BankInvest Basis and Alm Brand go up and down completely randomly.
Pair Corralation between BankInvest Basis and Alm Brand
If you would invest (100.00) in Alm Brand Invest on September 2, 2024 and sell it today you would earn a total of 100.00 from holding Alm Brand Invest or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BankInvest Basis vs. Alm Brand Invest
Performance |
| Timeline |
| BankInvest Basis |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Alm Brand Invest |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BankInvest Basis and Alm Brand Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BankInvest Basis and Alm Brand
The main advantage of trading using opposite BankInvest Basis and Alm Brand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankInvest Basis position performs unexpectedly, Alm Brand 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 Alm Brand will offset losses from the drop in Alm Brand's long position.| BankInvest Basis vs. Sparinvest Lange | BankInvest Basis vs. Investeringsforeningen Danske Invest | BankInvest Basis vs. Sparinv SICAV |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |