Correlation Between Danske Invest and Maj Invest
Specify exactly 2 symbols:
By analyzing existing cross correlation between Danske Invest and Maj Invest Glob, you can compare the effects of market volatilities on Danske Invest and Maj 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 Danske Invest with a short position of Maj Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Danske Invest and Maj Invest.
Diversification Opportunities for Danske Invest and Maj Invest
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Danske and Maj is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Danske Invest and Maj Invest Glob in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maj Invest Glob 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 Maj Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maj Invest Glob has no effect on the direction of Danske Invest i.e., Danske Invest and Maj Invest go up and down completely randomly.
Pair Corralation between Danske Invest and Maj Invest
Assuming the 90 days trading horizon Danske Invest is expected to generate 6.38 times less return on investment than Maj Invest. But when comparing it to its historical volatility, Danske Invest is 18.21 times less risky than Maj Invest. It trades about 0.75 of its potential returns per unit of risk. Maj Invest Glob is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 13,410 in Maj Invest Glob on September 1, 2024 and sell it today you would earn a total of 763.00 from holding Maj Invest Glob or generate 5.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Danske Invest vs. Maj Invest Glob
Performance |
| Timeline |
| Danske Invest |
| Maj Invest Glob |
Danske Invest and Maj Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Danske Invest and Maj Invest
The main advantage of trading using opposite Danske Invest and Maj Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Danske Invest position performs unexpectedly, Maj 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 Maj Invest will offset losses from the drop in Maj Invest's long position.| Danske Invest vs. Danske Andelskassers Bank | Danske Invest vs. Laan Spar Bank | Danske Invest vs. Prime Office AS | Danske Invest vs. Dataproces Group AS |
| Maj Invest vs. Novo Nordisk AS | Maj Invest vs. Nordea Bank Abp | Maj Invest vs. DSV Panalpina AS | Maj 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |