Correlation Between Dampskibsselskabet and LED IBond
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By analyzing existing cross correlation between Dampskibsselskabet Norden AS and LED iBond International, you can compare the effects of market volatilities on Dampskibsselskabet and LED IBond 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 LED IBond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dampskibsselskabet and LED IBond.
Diversification Opportunities for Dampskibsselskabet and LED IBond
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dampskibsselskabet and LED is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Dampskibsselskabet Norden AS and LED iBond International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LED iBond International 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 LED IBond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LED iBond International has no effect on the direction of Dampskibsselskabet i.e., Dampskibsselskabet and LED IBond go up and down completely randomly.
Pair Corralation between Dampskibsselskabet and LED IBond
Assuming the 90 days trading horizon Dampskibsselskabet Norden AS is expected to under-perform the LED IBond. But the stock apears to be less risky and, when comparing its historical volatility, Dampskibsselskabet Norden AS is 10.41 times less risky than LED IBond. The stock trades about -0.19 of its potential returns per unit of risk. The LED iBond International is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 28.00 in LED iBond International on August 29, 2024 and sell it today you would earn a total of 5.00 from holding LED iBond International or generate 17.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dampskibsselskabet Norden AS vs. LED iBond International
Performance |
| Timeline |
| Dampskibsselskabet |
| LED iBond International |
Dampskibsselskabet and LED IBond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dampskibsselskabet and LED IBond
The main advantage of trading using opposite Dampskibsselskabet and LED IBond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dampskibsselskabet position performs unexpectedly, LED IBond 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 LED IBond will offset losses from the drop in LED IBond's long position.| Dampskibsselskabet vs. TORM plc | Dampskibsselskabet vs. FLSmidth Co | Dampskibsselskabet vs. NKT AS | Dampskibsselskabet vs. ALK Abell AS |
| LED IBond vs. Alm Brand | LED IBond vs. Sparinvest INDEX Globale | LED IBond vs. Bavarian Nordic | LED IBond vs. Investeringsselskabet Luxor 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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