Correlation Between BankIn Bredygt and Fynske Bank
Can any of the company-specific risk be diversified away by investing in both BankIn Bredygt and Fynske Bank 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 Fynske Bank 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 Fynske Bank AS, you can compare the effects of market volatilities on BankIn Bredygt and Fynske Bank 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 Fynske Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankIn Bredygt and Fynske Bank.
Diversification Opportunities for BankIn Bredygt and Fynske Bank
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BankIn and Fynske is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding BankIn Bredygt Klimaakt and Fynske Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fynske Bank 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 Fynske Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fynske Bank AS has no effect on the direction of BankIn Bredygt i.e., BankIn Bredygt and Fynske Bank go up and down completely randomly.
Pair Corralation between BankIn Bredygt and Fynske Bank
Assuming the 90 days trading horizon BankIn Bredygt Klimaakt is expected to generate 0.94 times more return on investment than Fynske Bank. However, BankIn Bredygt Klimaakt is 1.07 times less risky than Fynske Bank. It trades about 0.04 of its potential returns per unit of risk. Fynske Bank AS is currently generating about -0.06 per unit of risk. If you would invest 10,660 in BankIn Bredygt Klimaakt on August 29, 2024 and sell it today you would earn a total of 75.00 from holding BankIn Bredygt Klimaakt or generate 0.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 78.26% |
| Values | Daily Returns |
BankIn Bredygt Klimaakt vs. Fynske Bank AS
Performance |
| Timeline |
| BankIn Bredygt Klimaakt |
| Fynske Bank AS |
BankIn Bredygt and Fynske Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BankIn Bredygt and Fynske Bank
The main advantage of trading using opposite BankIn Bredygt and Fynske Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankIn Bredygt position performs unexpectedly, Fynske Bank 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 Fynske Bank will offset losses from the drop in Fynske Bank'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 |
| Fynske Bank vs. Sydbank AS | Fynske Bank vs. Jyske Bank AS | Fynske Bank vs. Alm Brand | Fynske Bank vs. Nordea Bank Abp |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |