Correlation Between BankIn Bredygt and Konsolidator
Can any of the company-specific risk be diversified away by investing in both BankIn Bredygt and Konsolidator 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 Konsolidator 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 Konsolidator AS, you can compare the effects of market volatilities on BankIn Bredygt and Konsolidator 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 Konsolidator. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankIn Bredygt and Konsolidator.
Diversification Opportunities for BankIn Bredygt and Konsolidator
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BankIn and Konsolidator is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding BankIn Bredygt Klimaakt and Konsolidator AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konsolidator 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 Konsolidator. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konsolidator AS has no effect on the direction of BankIn Bredygt i.e., BankIn Bredygt and Konsolidator go up and down completely randomly.
Pair Corralation between BankIn Bredygt and Konsolidator
Assuming the 90 days trading horizon BankIn Bredygt Klimaakt is expected to generate 0.36 times more return on investment than Konsolidator. However, BankIn Bredygt Klimaakt is 2.81 times less risky than Konsolidator. It trades about 0.07 of its potential returns per unit of risk. Konsolidator AS is currently generating about 0.01 per unit of risk. If you would invest 9,514 in BankIn Bredygt Klimaakt on September 14, 2024 and sell it today you would earn a total of 1,296 from holding BankIn Bredygt Klimaakt or generate 13.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 55.76% |
| Values | Daily Returns |
BankIn Bredygt Klimaakt vs. Konsolidator AS
Performance |
| Timeline |
| BankIn Bredygt Klimaakt |
| Konsolidator AS |
BankIn Bredygt and Konsolidator Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BankIn Bredygt and Konsolidator
The main advantage of trading using opposite BankIn Bredygt and Konsolidator positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankIn Bredygt position performs unexpectedly, Konsolidator 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 Konsolidator will offset losses from the drop in Konsolidator's long position.| BankIn Bredygt vs. Nordea Bank Abp | BankIn Bredygt vs. Danske Andelskassers Bank | BankIn Bredygt vs. TROPHY GAMES Development | BankIn Bredygt vs. Strategic Investments AS |
| Konsolidator vs. Fynske Bank AS | Konsolidator vs. BankIn Bredygt Klimaakt | Konsolidator vs. Nordfyns Bank AS | Konsolidator vs. TROPHY GAMES Development |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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