Correlation Between Danske Invest and Cessatech
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By analyzing existing cross correlation between Danske Invest and Cessatech AS, you can compare the effects of market volatilities on Danske Invest and Cessatech 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 Cessatech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Danske Invest and Cessatech.
Diversification Opportunities for Danske Invest and Cessatech
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Danske and Cessatech is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Danske Invest and Cessatech AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cessatech AS 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 are associated (or correlated) with Cessatech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cessatech AS has no effect on the direction of Danske Invest i.e., Danske Invest and Cessatech go up and down completely randomly.
Pair Corralation between Danske Invest and Cessatech
Assuming the 90 days trading horizon Danske Invest is expected to generate 0.03 times more return on investment than Cessatech. However, Danske Invest is 30.3 times less risky than Cessatech. It trades about 0.24 of its potential returns per unit of risk. Cessatech AS is currently generating about -0.04 per unit of risk. If you would invest 8,420 in Danske Invest on September 3, 2024 and sell it today you would earn a total of 373.00 from holding Danske Invest or generate 4.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 17.19% |
| Values | Daily Returns |
Danske Invest vs. Cessatech AS
Performance |
| Timeline |
| Danske Invest |
| Cessatech AS |
Danske Invest and Cessatech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Danske Invest and Cessatech
The main advantage of trading using opposite Danske Invest and Cessatech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Danske Invest position performs unexpectedly, Cessatech 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 Cessatech will offset losses from the drop in Cessatech's long position.| Danske Invest vs. Cessatech AS | Danske Invest vs. Vestjysk Bank AS | Danske Invest vs. Groenlandsbanken AS | Danske Invest vs. Djurslands Bank |
| Cessatech vs. Novo Nordisk AS | Cessatech vs. Nordea Bank Abp | Cessatech vs. DSV Panalpina AS | Cessatech 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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