Correlation Between Danske Invest and Jyske Bank
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By analyzing existing cross correlation between Danske Invest and Jyske Bank AS, you can compare the effects of market volatilities on Danske Invest and Jyske 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 Jyske Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Danske Invest and Jyske Bank.
Diversification Opportunities for Danske Invest and Jyske Bank
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Danske and Jyske is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Danske Invest and Jyske Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jyske Bank 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 Jyske Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jyske Bank AS has no effect on the direction of Danske Invest i.e., Danske Invest and Jyske Bank go up and down completely randomly.
Pair Corralation between Danske Invest and Jyske Bank
Assuming the 90 days trading horizon Danske Invest is expected to generate 2.02 times less return on investment than Jyske Bank. But when comparing it to its historical volatility, Danske Invest is 7.44 times less risky than Jyske Bank. It trades about 0.09 of its potential returns per unit of risk. Jyske Bank AS is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 43,051 in Jyske Bank AS on August 25, 2024 and sell it today you would earn a total of 5,989 from holding Jyske Bank AS or generate 13.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Danske Invest vs. Jyske Bank AS
Performance |
| Timeline |
| Danske Invest |
| Jyske Bank AS |
Danske Invest and Jyske Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Danske Invest and Jyske Bank
The main advantage of trading using opposite Danske Invest and Jyske Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Danske Invest position performs unexpectedly, Jyske 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 Jyske Bank will offset losses from the drop in Jyske Bank's long position.| Danske Invest vs. BankInv GloAkColum Threadndl | Danske Invest vs. Danske Andelskassers Bank | Danske Invest vs. NTG Nordic Transport | Danske Invest vs. Moens Bank AS |
| Jyske Bank vs. Groenlandsbanken AS | Jyske Bank vs. TROPHY GAMES Development | Jyske Bank vs. Sydbank AS | Jyske Bank vs. Carnegie Wealth Management |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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