Correlation Between Dataproces Group and Glunz Jensen
Can any of the company-specific risk be diversified away by investing in both Dataproces Group and Glunz Jensen 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 Dataproces Group and Glunz Jensen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dataproces Group AS and Glunz Jensen, you can compare the effects of market volatilities on Dataproces Group and Glunz Jensen 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 Dataproces Group with a short position of Glunz Jensen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dataproces Group and Glunz Jensen.
Diversification Opportunities for Dataproces Group and Glunz Jensen
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dataproces and Glunz is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Dataproces Group AS and Glunz Jensen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glunz Jensen and Dataproces Group 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 Dataproces Group AS are associated (or correlated) with Glunz Jensen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glunz Jensen has no effect on the direction of Dataproces Group i.e., Dataproces Group and Glunz Jensen go up and down completely randomly.
Pair Corralation between Dataproces Group and Glunz Jensen
Assuming the 90 days trading horizon Dataproces Group AS is expected to under-perform the Glunz Jensen. In addition to that, Dataproces Group is 1.48 times more volatile than Glunz Jensen. It trades about -0.02 of its total potential returns per unit of risk. Glunz Jensen is currently generating about 0.06 per unit of volatility. If you would invest 6,950 in Glunz Jensen on September 1, 2024 and sell it today you would earn a total of 200.00 from holding Glunz Jensen or generate 2.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Dataproces Group AS vs. Glunz Jensen
Performance |
| Timeline |
| Dataproces Group |
| Glunz Jensen |
Dataproces Group and Glunz Jensen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dataproces Group and Glunz Jensen
The main advantage of trading using opposite Dataproces Group and Glunz Jensen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dataproces Group position performs unexpectedly, Glunz Jensen 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 Glunz Jensen will offset losses from the drop in Glunz Jensen's long position.| Dataproces Group vs. Penneo AS | Dataproces Group vs. Bactiquant AS | Dataproces Group vs. cBrain AS | Dataproces Group vs. FOM Technologies AS |
| Glunz Jensen vs. First Farms AS | Glunz Jensen vs. SKAKO AS | Glunz Jensen vs. Rovsing AS | Glunz Jensen vs. Roblon 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |