Correlation Between BankInvest Optima and Danske Invest
Can any of the company-specific risk be diversified away by investing in both BankInvest Optima and Danske Invest 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 BankInvest Optima and Danske Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BankInvest Optima 30 and Danske Invest , you can compare the effects of market volatilities on BankInvest Optima and Danske Invest 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 Optima with a short position of Danske Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankInvest Optima and Danske Invest.
Diversification Opportunities for BankInvest Optima and Danske Invest
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between BankInvest and Danske is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding BankInvest Optima 30 and Danske Invest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Danske Invest and BankInvest Optima 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 Optima 30 are associated (or correlated) with Danske Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Danske Invest has no effect on the direction of BankInvest Optima i.e., BankInvest Optima and Danske Invest go up and down completely randomly.
Pair Corralation between BankInvest Optima and Danske Invest
Assuming the 90 days trading horizon BankInvest Optima 30 is expected to generate 8.64 times more return on investment than Danske Invest. However, BankInvest Optima is 8.64 times more volatile than Danske Invest . It trades about 0.34 of its potential returns per unit of risk. Danske Invest is currently generating about 0.75 per unit of risk. If you would invest 10,795 in BankInvest Optima 30 on September 1, 2024 and sell it today you would earn a total of 375.00 from holding BankInvest Optima 30 or generate 3.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BankInvest Optima 30 vs. Danske Invest
Performance |
| Timeline |
| BankInvest Optima |
| Danske Invest |
BankInvest Optima and Danske Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BankInvest Optima and Danske Invest
The main advantage of trading using opposite BankInvest Optima and Danske Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankInvest Optima position performs unexpectedly, Danske Invest 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 Danske Invest will offset losses from the drop in Danske Invest's long position.| BankInvest Optima vs. Novo Nordisk AS | BankInvest Optima vs. Nordea Bank Abp | BankInvest Optima vs. DSV Panalpina AS | BankInvest Optima vs. AP Mller |
| Danske Invest vs. Danske Andelskassers Bank | Danske Invest vs. Laan Spar Bank | Danske Invest vs. Prime Office AS | Danske Invest vs. Dataproces Group 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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