Correlation Between Djurslands Bank and Nnit AS
Can any of the company-specific risk be diversified away by investing in both Djurslands Bank and Nnit AS 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 Nnit AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Djurslands Bank and Nnit AS, you can compare the effects of market volatilities on Djurslands Bank and Nnit AS 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 Nnit AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Djurslands Bank and Nnit AS.
Diversification Opportunities for Djurslands Bank and Nnit AS
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Djurslands and Nnit is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Djurslands Bank and Nnit AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nnit AS 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 Nnit AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nnit AS has no effect on the direction of Djurslands Bank i.e., Djurslands Bank and Nnit AS go up and down completely randomly.
Pair Corralation between Djurslands Bank and Nnit AS
Assuming the 90 days trading horizon Djurslands Bank is expected to generate 0.43 times more return on investment than Nnit AS. However, Djurslands Bank is 2.31 times less risky than Nnit AS. It trades about 0.01 of its potential returns per unit of risk. Nnit AS is currently generating about -0.04 per unit of risk. If you would invest 51,000 in Djurslands Bank on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Djurslands Bank or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Djurslands Bank vs. Nnit AS
Performance |
| Timeline |
| Djurslands Bank |
| Nnit AS |
Djurslands Bank and Nnit AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Djurslands Bank and Nnit AS
The main advantage of trading using opposite Djurslands Bank and Nnit AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Djurslands Bank position performs unexpectedly, Nnit AS 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 Nnit AS will offset losses from the drop in Nnit AS'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 |
| Nnit AS vs. Djurslands Bank | Nnit AS vs. Nordinvestments AS | Nnit AS vs. NTG Nordic Transport | Nnit AS vs. Ringkjoebing Landbobank 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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