Correlation Between Danske Invest and MapsPeople
Can any of the company-specific risk be diversified away by investing in both Danske Invest and MapsPeople 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 MapsPeople into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Danske Invest and MapsPeople AS, you can compare the effects of market volatilities on Danske Invest and MapsPeople 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 MapsPeople. Check out your portfolio center. Please also check ongoing floating volatility patterns of Danske Invest and MapsPeople.
Diversification Opportunities for Danske Invest and MapsPeople
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Danske and MapsPeople is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Danske Invest and MapsPeople AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MapsPeople 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 MapsPeople. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MapsPeople AS has no effect on the direction of Danske Invest i.e., Danske Invest and MapsPeople go up and down completely randomly.
Pair Corralation between Danske Invest and MapsPeople
Assuming the 90 days trading horizon Danske Invest is expected to generate 106.81 times less return on investment than MapsPeople. But when comparing it to its historical volatility, Danske Invest is 52.95 times less risky than MapsPeople. It trades about 0.03 of its potential returns per unit of risk. MapsPeople AS is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 94.00 in MapsPeople AS on August 29, 2024 and sell it today you would earn a total of 55.00 from holding MapsPeople AS or generate 58.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Danske Invest vs. MapsPeople AS
Performance |
| Timeline |
| Danske Invest |
| MapsPeople AS |
Danske Invest and MapsPeople Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Danske Invest and MapsPeople
The main advantage of trading using opposite Danske Invest and MapsPeople positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Danske Invest position performs unexpectedly, MapsPeople 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 MapsPeople will offset losses from the drop in MapsPeople's long position.| Danske Invest vs. BankIn Bredygt Klimaakt | Danske Invest vs. Sydbank AS | Danske Invest vs. Vestjysk Bank AS | Danske Invest vs. Laan Spar Bank |
| MapsPeople vs. Penneo AS | MapsPeople vs. Orderyoyo AS | MapsPeople vs. FOM Technologies AS | MapsPeople vs. Shape Robotics 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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