Correlation Between DFDS AS and Jeudan
Can any of the company-specific risk be diversified away by investing in both DFDS AS and Jeudan 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 Jeudan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DFDS AS and Jeudan, you can compare the effects of market volatilities on DFDS AS and Jeudan 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 Jeudan. Check out your portfolio center. Please also check ongoing floating volatility patterns of DFDS AS and Jeudan.
Diversification Opportunities for DFDS AS and Jeudan
Good diversification
The 3 months correlation between DFDS and Jeudan is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding DFDS AS and Jeudan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeudan 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 Jeudan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeudan has no effect on the direction of DFDS AS i.e., DFDS AS and Jeudan go up and down completely randomly.
Pair Corralation between DFDS AS and Jeudan
Assuming the 90 days trading horizon DFDS AS is expected to under-perform the Jeudan. But the stock apears to be less risky and, when comparing its historical volatility, DFDS AS is 1.48 times less risky than Jeudan. The stock trades about -0.1 of its potential returns per unit of risk. The Jeudan is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 27,400 in Jeudan on September 1, 2024 and sell it today you would lose (6,800) from holding Jeudan or give up 24.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
DFDS AS vs. Jeudan
Performance |
| Timeline |
| DFDS AS |
| Jeudan |
DFDS AS and Jeudan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DFDS AS and Jeudan
The main advantage of trading using opposite DFDS AS and Jeudan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DFDS AS position performs unexpectedly, Jeudan 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 Jeudan will offset losses from the drop in Jeudan'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 |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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