Correlation Between Danske Invest and BankInvest Optima
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By analyzing existing cross correlation between Danske Invest Euro and BankInvest Optima 30, you can compare the effects of market volatilities on Danske Invest and BankInvest Optima 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 Danske Invest with a short position of BankInvest Optima. Check out your portfolio center. Please also check ongoing floating volatility patterns of Danske Invest and BankInvest Optima.
Diversification Opportunities for Danske Invest and BankInvest Optima
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Danske and BankInvest is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Danske Invest Euro and BankInvest Optima 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInvest Optima and Danske Invest 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 Danske Invest Euro are associated (or correlated) with BankInvest Optima. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInvest Optima has no effect on the direction of Danske Invest i.e., Danske Invest and BankInvest Optima go up and down completely randomly.
Pair Corralation between Danske Invest and BankInvest Optima
Assuming the 90 days trading horizon Danske Invest is expected to generate 2.52 times less return on investment than BankInvest Optima. But when comparing it to its historical volatility, Danske Invest Euro is 3.53 times less risky than BankInvest Optima. It trades about 0.47 of its potential returns per unit of risk. BankInvest Optima 30 is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 10,795 in BankInvest Optima 30 on September 1, 2024 and sell it today you would earn a total of 375.00 from holding BankInvest Optima 30 or generate 3.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Danske Invest Euro vs. BankInvest Optima 30
Performance |
| Timeline |
| Danske Invest Euro |
| BankInvest Optima |
Danske Invest and BankInvest Optima Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Danske Invest and BankInvest Optima
The main advantage of trading using opposite Danske Invest and BankInvest Optima positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Danske Invest position performs unexpectedly, BankInvest Optima 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 BankInvest Optima will offset losses from the drop in BankInvest Optima's long position.| Danske Invest vs. Novo Nordisk AS | Danske Invest vs. Nordea Bank Abp | Danske Invest vs. DSV Panalpina AS | Danske Invest vs. AP Mller |
| BankInvest Optima vs. Novo Nordisk AS | BankInvest Optima vs. Nordea Bank Abp | BankInvest Optima vs. DSV Panalpina AS | BankInvest Optima vs. AP Mller |
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 Stocks Directory module to find actively traded stocks across global markets.
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