Correlation Between Djurslands Bank and Maj Invest
Can any of the company-specific risk be diversified away by investing in both Djurslands Bank and Maj 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 Djurslands Bank and Maj Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Djurslands Bank and Maj Invest Pension, you can compare the effects of market volatilities on Djurslands Bank and Maj 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 Djurslands Bank with a short position of Maj Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Djurslands Bank and Maj Invest.
Diversification Opportunities for Djurslands Bank and Maj Invest
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Djurslands and Maj is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Djurslands Bank and Maj Invest Pension in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maj Invest Pension 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 Maj Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maj Invest Pension has no effect on the direction of Djurslands Bank i.e., Djurslands Bank and Maj Invest go up and down completely randomly.
Pair Corralation between Djurslands Bank and Maj Invest
Assuming the 90 days trading horizon Djurslands Bank is expected to generate 5.47 times more return on investment than Maj Invest. However, Djurslands Bank is 5.47 times more volatile than Maj Invest Pension. It trades about 0.27 of its potential returns per unit of risk. Maj Invest Pension is currently generating about 0.25 per unit of risk. If you would invest 60,500 in Djurslands Bank on November 28, 2024 and sell it today you would earn a total of 5,500 from holding Djurslands Bank or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Djurslands Bank vs. Maj Invest Pension
Performance |
| Timeline |
| Djurslands Bank |
| Maj Invest Pension |
Djurslands Bank and Maj Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Djurslands Bank and Maj Invest
The main advantage of trading using opposite Djurslands Bank and Maj Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Djurslands Bank position performs unexpectedly, Maj 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 Maj Invest will offset losses from the drop in Maj Invest's long position.| Djurslands Bank vs. Skjern Bank AS | Djurslands Bank vs. Lollands Bank | Djurslands Bank vs. Kreditbanken AS | Djurslands Bank vs. Fynske Bank AS |
| Maj Invest vs. Djurslands Bank | Maj Invest vs. Strategic Investments AS | Maj Invest vs. FOM Technologies AS | Maj Invest vs. Scandinavian Medical Solutions |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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