Correlation Between DKINYM and Vestjysk Bank
Can any of the company-specific risk be diversified away by investing in both DKINYM and Vestjysk 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 Vestjysk 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 Vestjysk Bank AS, you can compare the effects of market volatilities on DKINYM and Vestjysk 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 Vestjysk Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of DKINYM and Vestjysk Bank.
Diversification Opportunities for DKINYM and Vestjysk Bank
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DKINYM and Vestjysk is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Investeringsforeningen Danske and Vestjysk Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vestjysk 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 Vestjysk Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vestjysk Bank AS has no effect on the direction of DKINYM i.e., DKINYM and Vestjysk Bank go up and down completely randomly.
Pair Corralation between DKINYM and Vestjysk Bank
Assuming the 90 days trading horizon Investeringsforeningen Danske Invest is expected to generate 0.68 times more return on investment than Vestjysk Bank. However, Investeringsforeningen Danske Invest is 1.46 times less risky than Vestjysk Bank. It trades about 0.09 of its potential returns per unit of risk. Vestjysk Bank AS is currently generating about 0.02 per unit of risk. If you would invest 17,121 in Investeringsforeningen Danske Invest on August 27, 2024 and sell it today you would earn a total of 3,348 from holding Investeringsforeningen Danske Invest or generate 19.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investeringsforeningen Danske vs. Vestjysk Bank AS
Performance |
| Timeline |
| Investeringsforeningen |
| Vestjysk Bank AS |
DKINYM and Vestjysk Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DKINYM and Vestjysk Bank
The main advantage of trading using opposite DKINYM and Vestjysk Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DKINYM position performs unexpectedly, Vestjysk 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 Vestjysk Bank will offset losses from the drop in Vestjysk Bank's long position.| DKINYM vs. Jyske Invest Nye | DKINYM vs. Jyske Invest Korte | DKINYM vs. Jyske Invest Nye | DKINYM vs. Jyske Invest Virksomhedsobligationer |
| Vestjysk Bank vs. Dataproces Group AS | Vestjysk Bank vs. cBrain AS | Vestjysk Bank vs. ALK Abell AS | Vestjysk Bank vs. ChemoMetec 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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