Correlation Between Djurslands Bank and Nordea Invest
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By analyzing existing cross correlation between Djurslands Bank and Nordea Invest Aktier, you can compare the effects of market volatilities on Djurslands Bank and Nordea 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 Nordea Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Djurslands Bank and Nordea Invest.
Diversification Opportunities for Djurslands Bank and Nordea Invest
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Djurslands and Nordea is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Djurslands Bank and Nordea Invest Aktier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Aktier 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 Nordea Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Invest Aktier has no effect on the direction of Djurslands Bank i.e., Djurslands Bank and Nordea Invest go up and down completely randomly.
Pair Corralation between Djurslands Bank and Nordea Invest
Assuming the 90 days trading horizon Djurslands Bank is expected to generate 1.33 times more return on investment than Nordea Invest. However, Djurslands Bank is 1.33 times more volatile than Nordea Invest Aktier. It trades about 0.09 of its potential returns per unit of risk. Nordea Invest Aktier is currently generating about 0.03 per unit of risk. If you would invest 36,431 in Djurslands Bank on October 13, 2024 and sell it today you would earn a total of 22,569 from holding Djurslands Bank or generate 61.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 87.22% |
| Values | Daily Returns |
Djurslands Bank vs. Nordea Invest Aktier
Performance |
| Timeline |
| Djurslands Bank |
| Nordea Invest Aktier |
Djurslands Bank and Nordea Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Djurslands Bank and Nordea Invest
The main advantage of trading using opposite Djurslands Bank and Nordea Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Djurslands Bank position performs unexpectedly, Nordea 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 Nordea Invest will offset losses from the drop in Nordea 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 |
| Nordea Invest vs. Laan Spar Bank | Nordea Invest vs. Djurslands Bank | Nordea Invest vs. Strategic Investments AS | Nordea Invest vs. Alefarm Brewing 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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