Correlation Between BankInvest Optima and Maj Invest
Can any of the company-specific risk be diversified away by investing in both BankInvest Optima and Maj 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 Maj 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 Maj Invest Emerging, you can compare the effects of market volatilities on BankInvest Optima and Maj 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 Maj Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankInvest Optima and Maj Invest.
Diversification Opportunities for BankInvest Optima and Maj Invest
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between BankInvest and Maj is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding BankInvest Optima 30 and Maj Invest Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maj Invest Emerging 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 Maj Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maj Invest Emerging has no effect on the direction of BankInvest Optima i.e., BankInvest Optima and Maj Invest go up and down completely randomly.
Pair Corralation between BankInvest Optima and Maj Invest
Assuming the 90 days trading horizon BankInvest Optima 30 is expected to generate 0.32 times more return on investment than Maj Invest. However, BankInvest Optima 30 is 3.15 times less risky than Maj Invest. It trades about 0.09 of its potential returns per unit of risk. Maj Invest Emerging is currently generating about 0.02 per unit of risk. If you would invest 9,564 in BankInvest Optima 30 on November 2, 2024 and sell it today you would earn a total of 1,711 from holding BankInvest Optima 30 or generate 17.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 77.78% |
| Values | Daily Returns |
BankInvest Optima 30 vs. Maj Invest Emerging
Performance |
| Timeline |
| BankInvest Optima |
| Maj Invest Emerging |
BankInvest Optima and Maj Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BankInvest Optima and Maj Invest
The main advantage of trading using opposite BankInvest Optima and Maj Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankInvest Optima position performs unexpectedly, Maj 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 Maj Invest will offset losses from the drop in Maj Invest's long position.| BankInvest Optima vs. Danske Andelskassers Bank | BankInvest Optima vs. Strategic Investments AS | BankInvest Optima vs. Nordea Bank Abp | BankInvest Optima vs. Ringkjoebing Landbobank AS |
| Maj Invest vs. Maj Invest | Maj Invest vs. Maj Invest Value | Maj Invest vs. Maj Invest | Maj Invest vs. Sparinvest Lange |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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