Correlation Between Djurslands Bank and Lollands Bank
Can any of the company-specific risk be diversified away by investing in both Djurslands Bank and Lollands 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 Djurslands Bank and Lollands Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Djurslands Bank and Lollands Bank, you can compare the effects of market volatilities on Djurslands Bank and Lollands 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 Djurslands Bank with a short position of Lollands Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Djurslands Bank and Lollands Bank.
Diversification Opportunities for Djurslands Bank and Lollands Bank
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Djurslands and Lollands is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Djurslands Bank and Lollands Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lollands Bank and Djurslands Bank 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 Djurslands Bank are associated (or correlated) with Lollands Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lollands Bank has no effect on the direction of Djurslands Bank i.e., Djurslands Bank and Lollands Bank go up and down completely randomly.
Pair Corralation between Djurslands Bank and Lollands Bank
Assuming the 90 days trading horizon Djurslands Bank is expected to under-perform the Lollands Bank. But the stock apears to be less risky and, when comparing its historical volatility, Djurslands Bank is 1.43 times less risky than Lollands Bank. The stock trades about -0.09 of its potential returns per unit of risk. The Lollands Bank is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 57,000 in Lollands Bank on August 25, 2024 and sell it today you would lose (1,000.00) from holding Lollands Bank or give up 1.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Djurslands Bank vs. Lollands Bank
Performance |
| Timeline |
| Djurslands Bank |
| Lollands Bank |
Djurslands Bank and Lollands Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Djurslands Bank and Lollands Bank
The main advantage of trading using opposite Djurslands Bank and Lollands Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Djurslands Bank position performs unexpectedly, Lollands 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 Lollands Bank will offset losses from the drop in Lollands Bank's long position.| Djurslands Bank vs. Dataproces Group AS | Djurslands Bank vs. cBrain AS | Djurslands Bank vs. ALK Abell AS | Djurslands Bank vs. ChemoMetec AS |
| Lollands Bank vs. Dataproces Group AS | Lollands Bank vs. cBrain AS | Lollands Bank vs. ALK Abell AS | Lollands Bank vs. ChemoMetec 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |