Correlation Between DKINYM and BAIGAI
Can any of the company-specific risk be diversified away by investing in both DKINYM and BAIGAI 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 DKINYM and BAIGAI 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 Investeringsforeningen Bankinvest , you can compare the effects of market volatilities on DKINYM and BAIGAI 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 DKINYM with a short position of BAIGAI. Check out your portfolio center. Please also check ongoing floating volatility patterns of DKINYM and BAIGAI.
Diversification Opportunities for DKINYM and BAIGAI
Good diversification
The 3 months correlation between DKINYM and BAIGAI is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Investeringsforeningen Danske and Investeringsforeningen Bankinv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investeringsforeningen and DKINYM 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 BAIGAI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investeringsforeningen has no effect on the direction of DKINYM i.e., DKINYM and BAIGAI go up and down completely randomly.
Pair Corralation between DKINYM and BAIGAI
Assuming the 90 days trading horizon Investeringsforeningen Danske Invest is expected to under-perform the BAIGAI. But the fund apears to be less risky and, when comparing its historical volatility, Investeringsforeningen Danske Invest is 1.27 times less risky than BAIGAI. The fund trades about -0.04 of its potential returns per unit of risk. The Investeringsforeningen Bankinvest is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 14,546 in Investeringsforeningen Bankinvest on November 4, 2024 and sell it today you would earn a total of 481.00 from holding Investeringsforeningen Bankinvest or generate 3.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Investeringsforeningen Danske vs. Investeringsforeningen Bankinv
Performance |
| Timeline |
| Investeringsforeningen |
| Investeringsforeningen |
DKINYM and BAIGAI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DKINYM and BAIGAI
The main advantage of trading using opposite DKINYM and BAIGAI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DKINYM position performs unexpectedly, BAIGAI 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 BAIGAI will offset losses from the drop in BAIGAI's long position.| DKINYM vs. Sparinvest Lange | DKINYM vs. Investeringsforeningen Danske Invest | DKINYM vs. Sparinv SICAV | DKINYM vs. Sparinvest Value Emerging |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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