Correlation Between AGRICULTBK HADR25 and TYSNES SPAREBANK
Can any of the company-specific risk be diversified away by investing in both AGRICULTBK HADR25 and TYSNES SPAREBANK 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 AGRICULTBK HADR25 and TYSNES SPAREBANK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGRICULTBK HADR25 YC and TYSNES SPAREBANK NK, you can compare the effects of market volatilities on AGRICULTBK HADR25 and TYSNES SPAREBANK 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 AGRICULTBK HADR25 with a short position of TYSNES SPAREBANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICULTBK HADR25 and TYSNES SPAREBANK.
Diversification Opportunities for AGRICULTBK HADR25 and TYSNES SPAREBANK
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AGRICULTBK and TYSNES is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding AGRICULTBK HADR25 YC and TYSNES SPAREBANK NK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TYSNES SPAREBANK and AGRICULTBK HADR25 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 AGRICULTBK HADR25 YC are associated (or correlated) with TYSNES SPAREBANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TYSNES SPAREBANK has no effect on the direction of AGRICULTBK HADR25 i.e., AGRICULTBK HADR25 and TYSNES SPAREBANK go up and down completely randomly.
Pair Corralation between AGRICULTBK HADR25 and TYSNES SPAREBANK
Assuming the 90 days trading horizon AGRICULTBK HADR25 YC is expected to generate 1.41 times more return on investment than TYSNES SPAREBANK. However, AGRICULTBK HADR25 is 1.41 times more volatile than TYSNES SPAREBANK NK. It trades about 0.11 of its potential returns per unit of risk. TYSNES SPAREBANK NK is currently generating about -0.04 per unit of risk. If you would invest 975.00 in AGRICULTBK HADR25 YC on September 21, 2024 and sell it today you would earn a total of 255.00 from holding AGRICULTBK HADR25 YC or generate 26.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGRICULTBK HADR25 YC vs. TYSNES SPAREBANK NK
Performance |
| Timeline |
| AGRICULTBK HADR25 |
| TYSNES SPAREBANK |
AGRICULTBK HADR25 and TYSNES SPAREBANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGRICULTBK HADR25 and TYSNES SPAREBANK
The main advantage of trading using opposite AGRICULTBK HADR25 and TYSNES SPAREBANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICULTBK HADR25 position performs unexpectedly, TYSNES SPAREBANK 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 TYSNES SPAREBANK will offset losses from the drop in TYSNES SPAREBANK's long position.| AGRICULTBK HADR25 vs. The Toronto Dominion Bank | AGRICULTBK HADR25 vs. Superior Plus Corp | AGRICULTBK HADR25 vs. SIVERS SEMICONDUCTORS AB | AGRICULTBK HADR25 vs. NorAm Drilling AS |
| TYSNES SPAREBANK vs. Daito Trust Construction | TYSNES SPAREBANK vs. 24SEVENOFFICE GROUP AB | TYSNES SPAREBANK vs. AUST AGRICULTURAL | TYSNES SPAREBANK vs. AGRICULTBK HADR25 YC |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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