Correlation Between BankIn Bredygt and MapsPeople
Can any of the company-specific risk be diversified away by investing in both BankIn Bredygt and MapsPeople 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 MapsPeople 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 MapsPeople AS, you can compare the effects of market volatilities on BankIn Bredygt and MapsPeople 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 MapsPeople. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankIn Bredygt and MapsPeople.
Diversification Opportunities for BankIn Bredygt and MapsPeople
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BankIn and MapsPeople is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding BankIn Bredygt Klimaakt and MapsPeople AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MapsPeople 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 MapsPeople. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MapsPeople AS has no effect on the direction of BankIn Bredygt i.e., BankIn Bredygt and MapsPeople go up and down completely randomly.
Pair Corralation between BankIn Bredygt and MapsPeople
Assuming the 90 days trading horizon BankIn Bredygt is expected to generate 4.34 times less return on investment than MapsPeople. But when comparing it to its historical volatility, BankIn Bredygt Klimaakt is 8.0 times less risky than MapsPeople. It trades about 0.04 of its potential returns per unit of risk. MapsPeople AS is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 161.00 in MapsPeople AS on August 29, 2024 and sell it today you would lose (12.00) from holding MapsPeople AS or give up 7.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 78.26% |
| Values | Daily Returns |
BankIn Bredygt Klimaakt vs. MapsPeople AS
Performance |
| Timeline |
| BankIn Bredygt Klimaakt |
| MapsPeople AS |
BankIn Bredygt and MapsPeople Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BankIn Bredygt and MapsPeople
The main advantage of trading using opposite BankIn Bredygt and MapsPeople positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankIn Bredygt position performs unexpectedly, MapsPeople 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 MapsPeople will offset losses from the drop in MapsPeople'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 |
| MapsPeople vs. Penneo AS | MapsPeople vs. Orderyoyo AS | MapsPeople vs. FOM Technologies AS | MapsPeople vs. Shape Robotics 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.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |