Correlation Between BankInv Kort and Carnegie Wealth
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By analyzing existing cross correlation between BankInv Kort HY and Carnegie Wealth Management, you can compare the effects of market volatilities on BankInv Kort and Carnegie Wealth 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 Kort with a short position of Carnegie Wealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankInv Kort and Carnegie Wealth.
Diversification Opportunities for BankInv Kort and Carnegie Wealth
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between BankInv and Carnegie is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding BankInv Kort HY and Carnegie Wealth Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carnegie Wealth Mana and BankInv Kort 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 Kort HY are associated (or correlated) with Carnegie Wealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carnegie Wealth Mana has no effect on the direction of BankInv Kort i.e., BankInv Kort and Carnegie Wealth go up and down completely randomly.
Pair Corralation between BankInv Kort and Carnegie Wealth
Assuming the 90 days trading horizon BankInv Kort is expected to generate 2.01 times less return on investment than Carnegie Wealth. But when comparing it to its historical volatility, BankInv Kort HY is 4.68 times less risky than Carnegie Wealth. It trades about 0.09 of its potential returns per unit of risk. Carnegie Wealth Management is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 11,395 in Carnegie Wealth Management on October 18, 2024 and sell it today you would earn a total of 1,030 from holding Carnegie Wealth Management or generate 9.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 80.99% |
| Values | Daily Returns |
BankInv Kort HY vs. Carnegie Wealth Management
Performance |
| Timeline |
| BankInv Kort HY |
| Carnegie Wealth Mana |
BankInv Kort and Carnegie Wealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BankInv Kort and Carnegie Wealth
The main advantage of trading using opposite BankInv Kort and Carnegie Wealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankInv Kort position performs unexpectedly, Carnegie Wealth 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 Carnegie Wealth will offset losses from the drop in Carnegie Wealth's long position.| BankInv Kort vs. Scandinavian Tobacco Group | BankInv Kort vs. FOM Technologies AS | BankInv Kort vs. Laan Spar Bank | BankInv Kort vs. Carnegie Wealth Management |
| Carnegie Wealth vs. Danske Andelskassers Bank | Carnegie Wealth vs. Embla Medical hf | Carnegie Wealth vs. BankInv Kort HY | Carnegie Wealth vs. Groenlandsbanken 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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