Correlation Between Danske Invest and Lollands Bank
Can any of the company-specific risk be diversified away by investing in both Danske Invest 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 Danske Invest and Lollands Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Danske Invest Europa and Lollands Bank, you can compare the effects of market volatilities on Danske Invest 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 Danske Invest with a short position of Lollands Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Danske Invest and Lollands Bank.
Diversification Opportunities for Danske Invest and Lollands Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Danske and Lollands is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Danske Invest Europa and Lollands Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lollands Bank 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 Europa 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 Danske Invest i.e., Danske Invest and Lollands Bank go up and down completely randomly.
Pair Corralation between Danske Invest and Lollands Bank
If you would invest 54,129 in Lollands Bank on September 12, 2024 and sell it today you would earn a total of 2,371 from holding Lollands Bank or generate 4.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.2% |
| Values | Daily Returns |
Danske Invest Europa vs. Lollands Bank
Performance |
| Timeline |
| Danske Invest Europa |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Lollands Bank |
Danske Invest and Lollands Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Danske Invest and Lollands Bank
The main advantage of trading using opposite Danske Invest and Lollands Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Danske Invest 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.| Danske Invest vs. Prime Office AS | Danske Invest vs. BankInvest Value Globale | Danske Invest vs. Carnegie Wealth Management | Danske Invest vs. Sydbank AS |
| Lollands Bank vs. Skjern Bank AS | Lollands Bank vs. Kreditbanken AS | Lollands Bank vs. Djurslands Bank | Lollands Bank vs. Groenlandsbanken 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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