Correlation Between BankInvest Value and Scandinavian Tobacco
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By analyzing existing cross correlation between BankInvest Value Globale and Scandinavian Tobacco Group, you can compare the effects of market volatilities on BankInvest Value and Scandinavian Tobacco 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 Scandinavian Tobacco. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankInvest Value and Scandinavian Tobacco.
Diversification Opportunities for BankInvest Value and Scandinavian Tobacco
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BankInvest and Scandinavian is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding BankInvest Value Globale and Scandinavian Tobacco Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scandinavian Tobacco 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 Scandinavian Tobacco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scandinavian Tobacco has no effect on the direction of BankInvest Value i.e., BankInvest Value and Scandinavian Tobacco go up and down completely randomly.
Pair Corralation between BankInvest Value and Scandinavian Tobacco
Assuming the 90 days trading horizon BankInvest Value Globale is expected to generate 0.54 times more return on investment than Scandinavian Tobacco. However, BankInvest Value Globale is 1.86 times less risky than Scandinavian Tobacco. It trades about 0.08 of its potential returns per unit of risk. Scandinavian Tobacco Group is currently generating about -0.05 per unit of risk. If you would invest 9,414 in BankInvest Value Globale on October 20, 2024 and sell it today you would earn a total of 1,326 from holding BankInvest Value Globale or generate 14.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 85.37% |
| Values | Daily Returns |
BankInvest Value Globale vs. Scandinavian Tobacco Group
Performance |
| Timeline |
| BankInvest Value Globale |
| Scandinavian Tobacco |
BankInvest Value and Scandinavian Tobacco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BankInvest Value and Scandinavian Tobacco
The main advantage of trading using opposite BankInvest Value and Scandinavian Tobacco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankInvest Value position performs unexpectedly, Scandinavian Tobacco 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 Scandinavian Tobacco will offset losses from the drop in Scandinavian Tobacco's long position.| BankInvest Value vs. Skjern Bank AS | BankInvest Value vs. Nordea Bank Abp | BankInvest Value vs. Groenlandsbanken AS | BankInvest Value vs. Jyske Bank AS |
| Scandinavian Tobacco vs. Matas AS | Scandinavian Tobacco vs. Tryg AS | Scandinavian Tobacco vs. Alm Brand | Scandinavian Tobacco vs. Royal Unibrew 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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