Correlation Between DKIJAP and Jyske Invest
Can any of the company-specific risk be diversified away by investing in both DKIJAP and Jyske Invest 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 DKIJAP and Jyske Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investeringsforeningen Danske Invest and Jyske Invest Korte, you can compare the effects of market volatilities on DKIJAP and Jyske Invest 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 DKIJAP with a short position of Jyske Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of DKIJAP and Jyske Invest.
Diversification Opportunities for DKIJAP and Jyske Invest
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DKIJAP and Jyske is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Investeringsforeningen Danske and Jyske Invest Korte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jyske Invest Korte and DKIJAP 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 Investeringsforeningen Danske Invest are associated (or correlated) with Jyske Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jyske Invest Korte has no effect on the direction of DKIJAP i.e., DKIJAP and Jyske Invest go up and down completely randomly.
Pair Corralation between DKIJAP and Jyske Invest
Assuming the 90 days trading horizon Investeringsforeningen Danske Invest is expected to generate 13.05 times more return on investment than Jyske Invest. However, DKIJAP is 13.05 times more volatile than Jyske Invest Korte. It trades about 0.02 of its potential returns per unit of risk. Jyske Invest Korte is currently generating about 0.17 per unit of risk. If you would invest 12,575 in Investeringsforeningen Danske Invest on August 24, 2024 and sell it today you would earn a total of 1,014 from holding Investeringsforeningen Danske Invest or generate 8.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.76% |
| Values | Daily Returns |
Investeringsforeningen Danske vs. Jyske Invest Korte
Performance |
| Timeline |
| Investeringsforeningen |
| Jyske Invest Korte |
DKIJAP and Jyske Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DKIJAP and Jyske Invest
The main advantage of trading using opposite DKIJAP and Jyske Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DKIJAP position performs unexpectedly, Jyske Invest 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 Invest will offset losses from the drop in Jyske Invest's long position.| DKIJAP vs. Lollands Bank | DKIJAP vs. Jyske Bank AS | DKIJAP vs. Kreditbanken AS | DKIJAP vs. BankInv GloAkColum Threadndl |
| Jyske Invest vs. Novo Nordisk AS | Jyske Invest vs. Nordea Bank Abp | Jyske Invest vs. DSV Panalpina AS | Jyske Invest 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |