Correlation Between BankInvest Optima and Royal Unibrew
Can any of the company-specific risk be diversified away by investing in both BankInvest Optima and Royal Unibrew 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 Royal Unibrew 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 Royal Unibrew AS, you can compare the effects of market volatilities on BankInvest Optima and Royal Unibrew 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 Royal Unibrew. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankInvest Optima and Royal Unibrew.
Diversification Opportunities for BankInvest Optima and Royal Unibrew
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BankInvest and Royal is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding BankInvest Optima 30 and Royal Unibrew AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Royal Unibrew AS 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 Royal Unibrew. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Royal Unibrew AS has no effect on the direction of BankInvest Optima i.e., BankInvest Optima and Royal Unibrew go up and down completely randomly.
Pair Corralation between BankInvest Optima and Royal Unibrew
Assuming the 90 days trading horizon BankInvest Optima 30 is expected to generate 0.38 times more return on investment than Royal Unibrew. However, BankInvest Optima 30 is 2.61 times less risky than Royal Unibrew. It trades about 0.04 of its potential returns per unit of risk. Royal Unibrew AS is currently generating about -0.3 per unit of risk. If you would invest 12,340 in BankInvest Optima 30 on October 20, 2024 and sell it today you would earn a total of 30.00 from holding BankInvest Optima 30 or generate 0.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
BankInvest Optima 30 vs. Royal Unibrew AS
Performance |
| Timeline |
| BankInvest Optima |
| Royal Unibrew AS |
BankInvest Optima and Royal Unibrew Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BankInvest Optima and Royal Unibrew
The main advantage of trading using opposite BankInvest Optima and Royal Unibrew positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankInvest Optima position performs unexpectedly, Royal Unibrew 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 Royal Unibrew will offset losses from the drop in Royal Unibrew'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 |
| Royal Unibrew vs. ROCKWOOL International AS | Royal Unibrew vs. Tryg AS | Royal Unibrew vs. DSV Panalpina AS | Royal Unibrew vs. GN Store Nord |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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