Correlation Between DSV Panalpina and Djurslands Bank
Can any of the company-specific risk be diversified away by investing in both DSV Panalpina and Djurslands 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 DSV Panalpina and Djurslands Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DSV Panalpina AS and Djurslands Bank, you can compare the effects of market volatilities on DSV Panalpina and Djurslands 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 DSV Panalpina with a short position of Djurslands Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSV Panalpina and Djurslands Bank.
Diversification Opportunities for DSV Panalpina and Djurslands Bank
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between DSV and Djurslands is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding DSV Panalpina AS and Djurslands Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Djurslands Bank and DSV Panalpina 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 DSV Panalpina AS are associated (or correlated) with Djurslands Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Djurslands Bank has no effect on the direction of DSV Panalpina i.e., DSV Panalpina and Djurslands Bank go up and down completely randomly.
Pair Corralation between DSV Panalpina and Djurslands Bank
Assuming the 90 days trading horizon DSV Panalpina AS is expected to generate 1.06 times more return on investment than Djurslands Bank. However, DSV Panalpina is 1.06 times more volatile than Djurslands Bank. It trades about 0.08 of its potential returns per unit of risk. Djurslands Bank is currently generating about 0.0 per unit of risk. If you would invest 151,000 in DSV Panalpina AS on September 4, 2024 and sell it today you would earn a total of 2,650 from holding DSV Panalpina AS or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
DSV Panalpina AS vs. Djurslands Bank
Performance |
| Timeline |
| DSV Panalpina AS |
| Djurslands Bank |
DSV Panalpina and Djurslands Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DSV Panalpina and Djurslands Bank
The main advantage of trading using opposite DSV Panalpina and Djurslands Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSV Panalpina position performs unexpectedly, Djurslands 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 Djurslands Bank will offset losses from the drop in Djurslands Bank's long position.| DSV Panalpina vs. Genmab AS | DSV Panalpina vs. Danske Bank AS | DSV Panalpina vs. Ambu AS | DSV Panalpina vs. FLSmidth Co |
| Djurslands Bank vs. Skjern Bank AS | Djurslands Bank vs. Lollands Bank | Djurslands Bank vs. Kreditbanken AS | Djurslands Bank vs. Fynske Bank 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |