Correlation Between BankInvest Value and Formuepleje Limittellus
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By analyzing existing cross correlation between BankInvest Value Globale and Formuepleje Limittellus, you can compare the effects of market volatilities on BankInvest Value and Formuepleje Limittellus 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 Formuepleje Limittellus. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankInvest Value and Formuepleje Limittellus.
Diversification Opportunities for BankInvest Value and Formuepleje Limittellus
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BankInvest and Formuepleje is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding BankInvest Value Globale and Formuepleje Limittellus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Formuepleje Limittellus 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 Formuepleje Limittellus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Formuepleje Limittellus has no effect on the direction of BankInvest Value i.e., BankInvest Value and Formuepleje Limittellus go up and down completely randomly.
Pair Corralation between BankInvest Value and Formuepleje Limittellus
Assuming the 90 days trading horizon BankInvest Value is expected to generate 5.61 times less return on investment than Formuepleje Limittellus. In addition to that, BankInvest Value is 1.67 times more volatile than Formuepleje Limittellus. It trades about 0.01 of its total potential returns per unit of risk. Formuepleje Limittellus is currently generating about 0.1 per unit of volatility. If you would invest 21,768 in Formuepleje Limittellus on September 12, 2024 and sell it today you would earn a total of 7,622 from holding Formuepleje Limittellus or generate 35.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 80.0% |
| Values | Daily Returns |
BankInvest Value Globale vs. Formuepleje Limittellus
Performance |
| Timeline |
| BankInvest Value Globale |
| Formuepleje Limittellus |
BankInvest Value and Formuepleje Limittellus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BankInvest Value and Formuepleje Limittellus
The main advantage of trading using opposite BankInvest Value and Formuepleje Limittellus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankInvest Value position performs unexpectedly, Formuepleje Limittellus 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 Formuepleje Limittellus will offset losses from the drop in Formuepleje Limittellus' 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 |
| Formuepleje Limittellus vs. Skjern Bank AS | Formuepleje Limittellus vs. Laan Spar Bank | Formuepleje Limittellus vs. PARKEN Sport Entertainment | Formuepleje Limittellus vs. North Media 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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