Correlation Between Dataproces Group and PFA Invest
Can any of the company-specific risk be diversified away by investing in both Dataproces Group and PFA 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 Dataproces Group and PFA Invest 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 PFA Invest Kreditobligationer, you can compare the effects of market volatilities on Dataproces Group and PFA 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 Dataproces Group with a short position of PFA Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dataproces Group and PFA Invest.
Diversification Opportunities for Dataproces Group and PFA Invest
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dataproces and PFA is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Dataproces Group AS and PFA Invest Kreditobligationer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PFA Invest Kreditobl 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 PFA Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PFA Invest Kreditobl has no effect on the direction of Dataproces Group i.e., Dataproces Group and PFA Invest go up and down completely randomly.
Pair Corralation between Dataproces Group and PFA Invest
Assuming the 90 days trading horizon Dataproces Group AS is expected to under-perform the PFA Invest. In addition to that, Dataproces Group is 10.29 times more volatile than PFA Invest Kreditobligationer. It trades about -0.06 of its total potential returns per unit of risk. PFA Invest Kreditobligationer is currently generating about 0.01 per unit of volatility. If you would invest 10,567 in PFA Invest Kreditobligationer on October 29, 2024 and sell it today you would earn a total of 3.00 from holding PFA Invest Kreditobligationer or generate 0.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dataproces Group AS vs. PFA Invest Kreditobligationer
Performance |
| Timeline |
| Dataproces Group |
| PFA Invest Kreditobl |
Dataproces Group and PFA Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dataproces Group and PFA Invest
The main advantage of trading using opposite Dataproces Group and PFA Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dataproces Group position performs unexpectedly, PFA 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 PFA Invest will offset losses from the drop in PFA Invest's long position.| Dataproces Group vs. Penneo AS | Dataproces Group vs. Bactiquant AS | Dataproces Group vs. cBrain AS | Dataproces Group vs. FOM Technologies AS |
| PFA Invest vs. Netcompany Group AS | PFA Invest vs. cBrain AS | PFA Invest vs. ALK Abell AS | PFA Invest vs. Green Hydrogen Systems |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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