Correlation Between DFDS AS and Hvidbjerg Bank
Can any of the company-specific risk be diversified away by investing in both DFDS AS and Hvidbjerg Bank 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 DFDS AS and Hvidbjerg Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DFDS AS and Hvidbjerg Bank, you can compare the effects of market volatilities on DFDS AS and Hvidbjerg Bank 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 DFDS AS with a short position of Hvidbjerg Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of DFDS AS and Hvidbjerg Bank.
Diversification Opportunities for DFDS AS and Hvidbjerg Bank
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DFDS and Hvidbjerg is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding DFDS AS and Hvidbjerg Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hvidbjerg Bank and DFDS AS 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 DFDS AS are associated (or correlated) with Hvidbjerg Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hvidbjerg Bank has no effect on the direction of DFDS AS i.e., DFDS AS and Hvidbjerg Bank go up and down completely randomly.
Pair Corralation between DFDS AS and Hvidbjerg Bank
Assuming the 90 days trading horizon DFDS AS is expected to under-perform the Hvidbjerg Bank. In addition to that, DFDS AS is 1.32 times more volatile than Hvidbjerg Bank. It trades about -0.08 of its total potential returns per unit of risk. Hvidbjerg Bank is currently generating about 0.04 per unit of volatility. If you would invest 10,700 in Hvidbjerg Bank on November 1, 2024 and sell it today you would earn a total of 2,800 from holding Hvidbjerg Bank or generate 26.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DFDS AS vs. Hvidbjerg Bank
Performance |
| Timeline |
| DFDS AS |
| Hvidbjerg Bank |
DFDS AS and Hvidbjerg Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DFDS AS and Hvidbjerg Bank
The main advantage of trading using opposite DFDS AS and Hvidbjerg Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DFDS AS position performs unexpectedly, Hvidbjerg Bank 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 Hvidbjerg Bank will offset losses from the drop in Hvidbjerg Bank's long position.| DFDS AS vs. FLSmidth Co | DFDS AS vs. NKT AS | DFDS AS vs. Dampskibsselskabet Norden AS | DFDS AS vs. GN Store Nord |
| Hvidbjerg Bank vs. Skjern Bank AS | Hvidbjerg Bank vs. Lollands Bank | Hvidbjerg Bank vs. Djurslands Bank | Hvidbjerg Bank vs. Nordfyns Bank 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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