Correlation Between BankInvest Value and Embla Medical
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By analyzing existing cross correlation between BankInvest Value Globale and Embla Medical hf, you can compare the effects of market volatilities on BankInvest Value and Embla Medical 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 BankInvest Value with a short position of Embla Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankInvest Value and Embla Medical.
Diversification Opportunities for BankInvest Value and Embla Medical
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between BankInvest and Embla is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding BankInvest Value Globale and Embla Medical hf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Embla Medical hf and BankInvest Value 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 BankInvest Value Globale are associated (or correlated) with Embla Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Embla Medical hf has no effect on the direction of BankInvest Value i.e., BankInvest Value and Embla Medical go up and down completely randomly.
Pair Corralation between BankInvest Value and Embla Medical
Assuming the 90 days trading horizon BankInvest Value Globale is expected to generate 0.67 times more return on investment than Embla Medical. However, BankInvest Value Globale is 1.49 times less risky than Embla Medical. It trades about 0.31 of its potential returns per unit of risk. Embla Medical hf is currently generating about 0.07 per unit of risk. If you would invest 10,190 in BankInvest Value Globale on September 1, 2024 and sell it today you would earn a total of 560.00 from holding BankInvest Value Globale or generate 5.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 90.91% |
| Values | Daily Returns |
BankInvest Value Globale vs. Embla Medical hf
Performance |
| Timeline |
| BankInvest Value Globale |
| Embla Medical hf |
BankInvest Value and Embla Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BankInvest Value and Embla Medical
The main advantage of trading using opposite BankInvest Value and Embla Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankInvest Value position performs unexpectedly, Embla Medical 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 Embla Medical will offset losses from the drop in Embla Medical's long position.| BankInvest Value vs. Novo Nordisk AS | BankInvest Value vs. Nordea Bank Abp | BankInvest Value vs. DSV Panalpina AS | BankInvest Value vs. AP Mller |
| Embla Medical vs. Novo Nordisk AS | Embla Medical vs. Nordea Bank Abp | Embla Medical vs. DSV Panalpina AS | Embla Medical vs. AP Mller |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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