Correlation Between BankInv Kort and Laan Spar
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By analyzing existing cross correlation between BankInv Kort HY and Laan Spar Bank, you can compare the effects of market volatilities on BankInv Kort and Laan Spar 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 Laan Spar. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankInv Kort and Laan Spar.
Diversification Opportunities for BankInv Kort and Laan Spar
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BankInv and Laan is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding BankInv Kort HY and Laan Spar Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Laan Spar Bank 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 Laan Spar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Laan Spar Bank has no effect on the direction of BankInv Kort i.e., BankInv Kort and Laan Spar go up and down completely randomly.
Pair Corralation between BankInv Kort and Laan Spar
Assuming the 90 days trading horizon BankInv Kort HY is expected to generate 0.16 times more return on investment than Laan Spar. However, BankInv Kort HY is 6.13 times less risky than Laan Spar. It trades about 0.16 of its potential returns per unit of risk. Laan Spar Bank is currently generating about -0.07 per unit of risk. If you would invest 10,335 in BankInv Kort HY on November 1, 2024 and sell it today you would earn a total of 55.00 from holding BankInv Kort HY or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BankInv Kort HY vs. Laan Spar Bank
Performance |
| Timeline |
| BankInv Kort HY |
| Laan Spar Bank |
BankInv Kort and Laan Spar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BankInv Kort and Laan Spar
The main advantage of trading using opposite BankInv Kort and Laan Spar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankInv Kort position performs unexpectedly, Laan Spar 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 Laan Spar will offset losses from the drop in Laan Spar's long position.| BankInv Kort vs. Jyske Bank AS | BankInv Kort vs. Vestjysk Bank AS | BankInv Kort vs. Nordea Bank Abp | BankInv Kort vs. Djurslands Bank |
| Laan Spar vs. Vestjysk Bank AS | Laan Spar vs. Skjern Bank AS | Laan Spar vs. Groenlandsbanken AS | Laan Spar vs. Kreditbanken 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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