Correlation Between DKINYM and Handelsinvest Danmark
Can any of the company-specific risk be diversified away by investing in both DKINYM and Handelsinvest Danmark 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 Handelsinvest Danmark 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 Handelsinvest Danmark, you can compare the effects of market volatilities on DKINYM and Handelsinvest Danmark 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 Handelsinvest Danmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of DKINYM and Handelsinvest Danmark.
Diversification Opportunities for DKINYM and Handelsinvest Danmark
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between DKINYM and Handelsinvest is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Investeringsforeningen Danske and Handelsinvest Danmark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Handelsinvest Danmark 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 Handelsinvest Danmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Handelsinvest Danmark has no effect on the direction of DKINYM i.e., DKINYM and Handelsinvest Danmark go up and down completely randomly.
Pair Corralation between DKINYM and Handelsinvest Danmark
Assuming the 90 days trading horizon Investeringsforeningen Danske Invest is expected to generate 0.38 times more return on investment than Handelsinvest Danmark. However, Investeringsforeningen Danske Invest is 2.62 times less risky than Handelsinvest Danmark. It trades about -0.04 of its potential returns per unit of risk. Handelsinvest Danmark is currently generating about -0.25 per unit of risk. If you would invest 20,551 in Investeringsforeningen Danske Invest on November 4, 2024 and sell it today you would lose (93.00) from holding Investeringsforeningen Danske Invest or give up 0.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Investeringsforeningen Danske vs. Handelsinvest Danmark
Performance |
| Timeline |
| Investeringsforeningen |
| Handelsinvest Danmark |
DKINYM and Handelsinvest Danmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DKINYM and Handelsinvest Danmark
The main advantage of trading using opposite DKINYM and Handelsinvest Danmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DKINYM position performs unexpectedly, Handelsinvest Danmark 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 Handelsinvest Danmark will offset losses from the drop in Handelsinvest Danmark's long position.| DKINYM vs. Sparinvest Lange | DKINYM vs. Investeringsforeningen Danske Invest | DKINYM vs. Sparinv SICAV | DKINYM vs. Sparinvest Value Emerging |
| Handelsinvest Danmark vs. Sparinvest Lange | Handelsinvest Danmark vs. Investeringsforeningen Danske Invest | Handelsinvest Danmark vs. Sparinv SICAV | Handelsinvest Danmark 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |