Correlation Between Danske Andelskassers and Aquaporin
Can any of the company-specific risk be diversified away by investing in both Danske Andelskassers and Aquaporin 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 Danske Andelskassers and Aquaporin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Danske Andelskassers Bank and Aquaporin AS, you can compare the effects of market volatilities on Danske Andelskassers and Aquaporin 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 Danske Andelskassers with a short position of Aquaporin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Danske Andelskassers and Aquaporin.
Diversification Opportunities for Danske Andelskassers and Aquaporin
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Danske and Aquaporin is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Danske Andelskassers Bank and Aquaporin AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquaporin AS and Danske Andelskassers 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 Danske Andelskassers Bank are associated (or correlated) with Aquaporin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aquaporin AS has no effect on the direction of Danske Andelskassers i.e., Danske Andelskassers and Aquaporin go up and down completely randomly.
Pair Corralation between Danske Andelskassers and Aquaporin
Assuming the 90 days trading horizon Danske Andelskassers Bank is expected to generate 0.26 times more return on investment than Aquaporin. However, Danske Andelskassers Bank is 3.92 times less risky than Aquaporin. It trades about 0.05 of its potential returns per unit of risk. Aquaporin AS is currently generating about -0.04 per unit of risk. If you would invest 987.00 in Danske Andelskassers Bank on August 25, 2024 and sell it today you would earn a total of 288.00 from holding Danske Andelskassers Bank or generate 29.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Danske Andelskassers Bank vs. Aquaporin AS
Performance |
| Timeline |
| Danske Andelskassers Bank |
| Aquaporin AS |
Danske Andelskassers and Aquaporin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Danske Andelskassers and Aquaporin
The main advantage of trading using opposite Danske Andelskassers and Aquaporin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Danske Andelskassers position performs unexpectedly, Aquaporin 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 Aquaporin will offset losses from the drop in Aquaporin's long position.| Danske Andelskassers vs. Spar Nord Bank | Danske Andelskassers vs. Sydbank AS | Danske Andelskassers vs. Jyske Bank AS | Danske Andelskassers vs. Dampskibsselskabet Norden AS |
| Aquaporin vs. Green Hydrogen Systems | Aquaporin vs. FOM Technologies AS | Aquaporin vs. ALK Abell AS | Aquaporin vs. Zealand Pharma 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |