Correlation Between BankInvest Optima and Lollands Bank
Can any of the company-specific risk be diversified away by investing in both BankInvest Optima and Lollands Bank 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 Lollands Bank 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 Lollands Bank, you can compare the effects of market volatilities on BankInvest Optima and Lollands Bank 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 Lollands Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankInvest Optima and Lollands Bank.
Diversification Opportunities for BankInvest Optima and Lollands Bank
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BankInvest and Lollands is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding BankInvest Optima 30 and Lollands Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lollands Bank 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 Lollands Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lollands Bank has no effect on the direction of BankInvest Optima i.e., BankInvest Optima and Lollands Bank go up and down completely randomly.
Pair Corralation between BankInvest Optima and Lollands Bank
Assuming the 90 days trading horizon BankInvest Optima 30 is expected to generate 0.29 times more return on investment than Lollands Bank. However, BankInvest Optima 30 is 3.47 times less risky than Lollands Bank. It trades about 0.12 of its potential returns per unit of risk. Lollands Bank is currently generating about -0.03 per unit of risk. If you would invest 10,460 in BankInvest Optima 30 on August 25, 2024 and sell it today you would earn a total of 700.00 from holding BankInvest Optima 30 or generate 6.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.23% |
| Values | Daily Returns |
BankInvest Optima 30 vs. Lollands Bank
Performance |
| Timeline |
| BankInvest Optima |
| Lollands Bank |
BankInvest Optima and Lollands Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BankInvest Optima and Lollands Bank
The main advantage of trading using opposite BankInvest Optima and Lollands Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankInvest Optima position performs unexpectedly, Lollands Bank 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 Lollands Bank will offset losses from the drop in Lollands Bank's long position.| BankInvest Optima vs. Lollands Bank | BankInvest Optima vs. Nordinvestments AS | BankInvest Optima vs. Scandinavian Tobacco Group | BankInvest Optima vs. BankInv GloAkColum Threadndl |
| Lollands Bank vs. Dataproces Group AS | Lollands Bank vs. cBrain AS | Lollands Bank vs. ALK Abell AS | Lollands Bank vs. ChemoMetec 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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