Correlation Between BankIn Bredygt and Bactiquant
Can any of the company-specific risk be diversified away by investing in both BankIn Bredygt and Bactiquant 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 BankIn Bredygt and Bactiquant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BankIn Bredygt Klimaakt and Bactiquant AS, you can compare the effects of market volatilities on BankIn Bredygt and Bactiquant 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 BankIn Bredygt with a short position of Bactiquant. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankIn Bredygt and Bactiquant.
Diversification Opportunities for BankIn Bredygt and Bactiquant
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BankIn and Bactiquant is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding BankIn Bredygt Klimaakt and Bactiquant AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bactiquant AS and BankIn Bredygt 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 BankIn Bredygt Klimaakt are associated (or correlated) with Bactiquant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bactiquant AS has no effect on the direction of BankIn Bredygt i.e., BankIn Bredygt and Bactiquant go up and down completely randomly.
Pair Corralation between BankIn Bredygt and Bactiquant
Assuming the 90 days trading horizon BankIn Bredygt Klimaakt is expected to generate 0.29 times more return on investment than Bactiquant. However, BankIn Bredygt Klimaakt is 3.48 times less risky than Bactiquant. It trades about 0.16 of its potential returns per unit of risk. Bactiquant AS is currently generating about -0.1 per unit of risk. If you would invest 10,415 in BankIn Bredygt Klimaakt on September 1, 2024 and sell it today you would earn a total of 350.00 from holding BankIn Bredygt Klimaakt or generate 3.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 81.82% |
| Values | Daily Returns |
BankIn Bredygt Klimaakt vs. Bactiquant AS
Performance |
| Timeline |
| BankIn Bredygt Klimaakt |
| Bactiquant AS |
BankIn Bredygt and Bactiquant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BankIn Bredygt and Bactiquant
The main advantage of trading using opposite BankIn Bredygt and Bactiquant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankIn Bredygt position performs unexpectedly, Bactiquant 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 Bactiquant will offset losses from the drop in Bactiquant's long position.| BankIn Bredygt vs. Novo Nordisk AS | BankIn Bredygt vs. Nordea Bank Abp | BankIn Bredygt vs. DSV Panalpina AS | BankIn Bredygt vs. AP Mller |
| Bactiquant vs. Sparinvest INDEX Globale | Bactiquant vs. Bavarian Nordic | Bactiquant vs. Investeringsselskabet Luxor AS | Bactiquant vs. cBrain 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 CEOs Directory module to screen CEOs from public companies around the world.
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