Correlation Between Cessatech and Jyske Invest
Can any of the company-specific risk be diversified away by investing in both Cessatech and Jyske 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 Cessatech and Jyske Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cessatech AS and Jyske Invest Korte, you can compare the effects of market volatilities on Cessatech and Jyske 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 Cessatech with a short position of Jyske Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cessatech and Jyske Invest.
Diversification Opportunities for Cessatech and Jyske Invest
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cessatech and Jyske is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Cessatech AS and Jyske Invest Korte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jyske Invest Korte and Cessatech 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 Cessatech AS are associated (or correlated) with Jyske Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jyske Invest Korte has no effect on the direction of Cessatech i.e., Cessatech and Jyske Invest go up and down completely randomly.
Pair Corralation between Cessatech and Jyske Invest
Assuming the 90 days trading horizon Cessatech AS is expected to under-perform the Jyske Invest. In addition to that, Cessatech is 14.8 times more volatile than Jyske Invest Korte. It trades about -0.07 of its total potential returns per unit of risk. Jyske Invest Korte is currently generating about -0.19 per unit of volatility. If you would invest 9,630 in Jyske Invest Korte on November 3, 2024 and sell it today you would lose (98.00) from holding Jyske Invest Korte or give up 1.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cessatech AS vs. Jyske Invest Korte
Performance |
| Timeline |
| Cessatech AS |
| Jyske Invest Korte |
Cessatech and Jyske Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cessatech and Jyske Invest
The main advantage of trading using opposite Cessatech and Jyske Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cessatech position performs unexpectedly, Jyske 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 Jyske Invest will offset losses from the drop in Jyske Invest's long position.| Cessatech vs. Sydbank AS | Cessatech vs. Scandinavian Tobacco Group | Cessatech vs. FOM Technologies AS | Cessatech vs. Nordinvestments AS |
| Jyske Invest vs. Laan Spar Bank | Jyske Invest vs. Strategic Investments AS | Jyske Invest vs. BankIn Bredygt Klimaakt | Jyske Invest vs. Nordea Bank Abp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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