Correlation Between BankInvest Virksomhedsoblig and BankInvest Hjt
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By analyzing existing cross correlation between BankInvest Virksomhedsobligationer and BankInvest Hjt, you can compare the effects of market volatilities on BankInvest Virksomhedsoblig and BankInvest Hjt 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 Virksomhedsoblig with a short position of BankInvest Hjt. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankInvest Virksomhedsoblig and BankInvest Hjt.
Diversification Opportunities for BankInvest Virksomhedsoblig and BankInvest Hjt
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between BankInvest and BankInvest is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding BankInvest Virksomhedsobliga and BankInvest Hjt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInvest Hjt and BankInvest Virksomhedsoblig 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 Virksomhedsobligationer are associated (or correlated) with BankInvest Hjt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInvest Hjt has no effect on the direction of BankInvest Virksomhedsoblig i.e., BankInvest Virksomhedsoblig and BankInvest Hjt go up and down completely randomly.
Pair Corralation between BankInvest Virksomhedsoblig and BankInvest Hjt
Assuming the 90 days trading horizon BankInvest Virksomhedsoblig is expected to generate 2.41 times less return on investment than BankInvest Hjt. But when comparing it to its historical volatility, BankInvest Virksomhedsobligationer is 2.26 times less risky than BankInvest Hjt. It trades about 0.06 of its potential returns per unit of risk. BankInvest Hjt is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 13,262 in BankInvest Hjt on October 22, 2024 and sell it today you would earn a total of 2,598 from holding BankInvest Hjt or generate 19.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.11% |
| Values | Daily Returns |
BankInvest Virksomhedsobliga vs. BankInvest Hjt
Performance |
| Timeline |
| BankInvest Virksomhedsoblig |
| BankInvest Hjt |
BankInvest Virksomhedsoblig and BankInvest Hjt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BankInvest Virksomhedsoblig and BankInvest Hjt
The main advantage of trading using opposite BankInvest Virksomhedsoblig and BankInvest Hjt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankInvest Virksomhedsoblig position performs unexpectedly, BankInvest Hjt 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 BankInvest Hjt will offset losses from the drop in BankInvest Hjt's long position.The idea behind BankInvest Virksomhedsobligationer and BankInvest Hjt pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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