Correlation Between Dampskibsselskabet and HusCompagniet
Can any of the company-specific risk be diversified away by investing in both Dampskibsselskabet and HusCompagniet 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 Dampskibsselskabet and HusCompagniet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dampskibsselskabet Norden AS and HusCompagniet AS, you can compare the effects of market volatilities on Dampskibsselskabet and HusCompagniet 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 Dampskibsselskabet with a short position of HusCompagniet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dampskibsselskabet and HusCompagniet.
Diversification Opportunities for Dampskibsselskabet and HusCompagniet
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dampskibsselskabet and HusCompagniet is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Dampskibsselskabet Norden AS and HusCompagniet AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HusCompagniet AS and Dampskibsselskabet 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 Dampskibsselskabet Norden AS are associated (or correlated) with HusCompagniet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HusCompagniet AS has no effect on the direction of Dampskibsselskabet i.e., Dampskibsselskabet and HusCompagniet go up and down completely randomly.
Pair Corralation between Dampskibsselskabet and HusCompagniet
Assuming the 90 days trading horizon Dampskibsselskabet Norden AS is expected to generate 0.93 times more return on investment than HusCompagniet. However, Dampskibsselskabet Norden AS is 1.07 times less risky than HusCompagniet. It trades about -0.15 of its potential returns per unit of risk. HusCompagniet AS is currently generating about -0.23 per unit of risk. If you would invest 23,241 in Dampskibsselskabet Norden AS on August 29, 2024 and sell it today you would lose (1,741) from holding Dampskibsselskabet Norden AS or give up 7.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dampskibsselskabet Norden AS vs. HusCompagniet AS
Performance |
| Timeline |
| Dampskibsselskabet |
| HusCompagniet AS |
Dampskibsselskabet and HusCompagniet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dampskibsselskabet and HusCompagniet
The main advantage of trading using opposite Dampskibsselskabet and HusCompagniet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dampskibsselskabet position performs unexpectedly, HusCompagniet 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 HusCompagniet will offset losses from the drop in HusCompagniet's long position.| Dampskibsselskabet vs. North Media AS | Dampskibsselskabet vs. HH International AS | Dampskibsselskabet vs. Per Aarsleff Holding | Dampskibsselskabet vs. First Farms AS |
| HusCompagniet vs. Matas AS | HusCompagniet vs. Netcompany Group AS | HusCompagniet vs. FLSmidth Co | HusCompagniet vs. GN Store Nord |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |