Correlation Between Broendbyernes and Kreditbanken
Can any of the company-specific risk be diversified away by investing in both Broendbyernes and Kreditbanken 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 Broendbyernes and Kreditbanken into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Broendbyernes IF Fodbold and Kreditbanken AS, you can compare the effects of market volatilities on Broendbyernes and Kreditbanken 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 Broendbyernes with a short position of Kreditbanken. Check out your portfolio center. Please also check ongoing floating volatility patterns of Broendbyernes and Kreditbanken.
Diversification Opportunities for Broendbyernes and Kreditbanken
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Broendbyernes and Kreditbanken is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Broendbyernes IF Fodbold and Kreditbanken AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kreditbanken AS and Broendbyernes 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 Broendbyernes IF Fodbold are associated (or correlated) with Kreditbanken. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kreditbanken AS has no effect on the direction of Broendbyernes i.e., Broendbyernes and Kreditbanken go up and down completely randomly.
Pair Corralation between Broendbyernes and Kreditbanken
Assuming the 90 days trading horizon Broendbyernes IF Fodbold is expected to under-perform the Kreditbanken. In addition to that, Broendbyernes is 2.17 times more volatile than Kreditbanken AS. It trades about 0.0 of its total potential returns per unit of risk. Kreditbanken AS is currently generating about 0.07 per unit of volatility. If you would invest 410,976 in Kreditbanken AS on December 10, 2024 and sell it today you would earn a total of 219,024 from holding Kreditbanken AS or generate 53.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Broendbyernes IF Fodbold vs. Kreditbanken AS
Performance |
| Timeline |
| Broendbyernes IF Fodbold |
| Kreditbanken AS |
Broendbyernes and Kreditbanken Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Broendbyernes and Kreditbanken
The main advantage of trading using opposite Broendbyernes and Kreditbanken positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Broendbyernes position performs unexpectedly, Kreditbanken 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 Kreditbanken will offset losses from the drop in Kreditbanken's long position.| Broendbyernes vs. PARKEN Sport Entertainment | Broendbyernes vs. Bang Olufsen | Broendbyernes vs. BioPorto | Broendbyernes vs. cBrain AS |
| Kreditbanken vs. Lollands Bank | Kreditbanken vs. Groenlandsbanken AS | Kreditbanken vs. Skjern Bank AS | Kreditbanken vs. Djurslands Bank |
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.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |