Correlation Between DKINYM and Skjern Bank
Can any of the company-specific risk be diversified away by investing in both DKINYM and Skjern Bank 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 Skjern Bank 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 Skjern Bank AS, you can compare the effects of market volatilities on DKINYM and Skjern Bank 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 Skjern Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of DKINYM and Skjern Bank.
Diversification Opportunities for DKINYM and Skjern Bank
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DKINYM and Skjern is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Investeringsforeningen Danske and Skjern Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skjern Bank AS 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 Skjern Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skjern Bank AS has no effect on the direction of DKINYM i.e., DKINYM and Skjern Bank go up and down completely randomly.
Pair Corralation between DKINYM and Skjern Bank
Assuming the 90 days trading horizon Investeringsforeningen Danske Invest is expected to generate 0.59 times more return on investment than Skjern Bank. However, Investeringsforeningen Danske Invest is 1.7 times less risky than Skjern Bank. It trades about -0.05 of its potential returns per unit of risk. Skjern Bank AS is currently generating about -0.3 per unit of risk. If you would invest 20,541 in Investeringsforeningen Danske Invest on August 29, 2024 and sell it today you would lose (172.00) from holding Investeringsforeningen Danske Invest or give up 0.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Investeringsforeningen Danske vs. Skjern Bank AS
Performance |
| Timeline |
| Investeringsforeningen |
| Skjern Bank AS |
DKINYM and Skjern Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DKINYM and Skjern Bank
The main advantage of trading using opposite DKINYM and Skjern Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DKINYM position performs unexpectedly, Skjern Bank 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 Skjern Bank will offset losses from the drop in Skjern Bank's long position.| DKINYM vs. Jyske Invest Nye | DKINYM vs. Jyske Invest Korte | DKINYM vs. Jyske Invest Nye | DKINYM vs. Jyske Invest Virksomhedsobligationer |
| Skjern Bank vs. Sydbank AS | Skjern Bank vs. Jyske Bank AS | Skjern Bank vs. Alm Brand | Skjern Bank vs. Nordea Bank Abp |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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