Correlation Between Embla Medical and Danske Invest
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By analyzing existing cross correlation between Embla Medical hf and Danske Invest Euro, you can compare the effects of market volatilities on Embla Medical and Danske Invest 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 Embla Medical with a short position of Danske Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embla Medical and Danske Invest.
Diversification Opportunities for Embla Medical and Danske Invest
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Embla and Danske is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Embla Medical hf and Danske Invest Euro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Danske Invest Euro and Embla Medical 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 Embla Medical hf are associated (or correlated) with Danske Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Danske Invest Euro has no effect on the direction of Embla Medical i.e., Embla Medical and Danske Invest go up and down completely randomly.
Pair Corralation between Embla Medical and Danske Invest
Assuming the 90 days trading horizon Embla Medical hf is expected to generate 9.98 times more return on investment than Danske Invest. However, Embla Medical is 9.98 times more volatile than Danske Invest Euro. It trades about 0.02 of its potential returns per unit of risk. Danske Invest Euro is currently generating about 0.13 per unit of risk. If you would invest 3,095 in Embla Medical hf on November 27, 2024 and sell it today you would earn a total of 225.00 from holding Embla Medical hf or generate 7.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Embla Medical hf vs. Danske Invest Euro
Performance |
| Timeline |
| Embla Medical hf |
| Danske Invest Euro |
Embla Medical and Danske Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embla Medical and Danske Invest
The main advantage of trading using opposite Embla Medical and Danske Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embla Medical position performs unexpectedly, Danske Invest 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 Danske Invest will offset losses from the drop in Danske Invest's long position.| Embla Medical vs. Ringkjoebing Landbobank AS | Embla Medical vs. Vestjysk Bank AS | Embla Medical vs. BankIn Bredygt Klimaakt | Embla Medical vs. NTG Nordic Transport |
| Danske Invest vs. Sydbank AS | Danske Invest vs. Hvidbjerg Bank | Danske Invest vs. Groenlandsbanken AS | Danske Invest vs. Moens 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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