Correlation Between First Citizens and Danske Bank
Can any of the company-specific risk be diversified away by investing in both First Citizens and Danske 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 First Citizens and Danske Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Citizens BancShares and Danske Bank AS, you can compare the effects of market volatilities on First Citizens and Danske 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 First Citizens with a short position of Danske Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Citizens and Danske Bank.
Diversification Opportunities for First Citizens and Danske Bank
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Danske is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding First Citizens BancShares and Danske Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Danske Bank AS and First Citizens 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 First Citizens BancShares are associated (or correlated) with Danske Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Danske Bank AS has no effect on the direction of First Citizens i.e., First Citizens and Danske Bank go up and down completely randomly.
Pair Corralation between First Citizens and Danske Bank
Assuming the 90 days horizon First Citizens BancShares is expected to under-perform the Danske Bank. In addition to that, First Citizens is 1.0 times more volatile than Danske Bank AS. It trades about -0.06 of its total potential returns per unit of risk. Danske Bank AS is currently generating about 0.26 per unit of volatility. If you would invest 1,526 in Danske Bank AS on November 28, 2024 and sell it today you would earn a total of 173.00 from holding Danske Bank AS or generate 11.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
First Citizens BancShares vs. Danske Bank AS
Performance |
| Timeline |
| First Citizens BancShares |
| Danske Bank AS |
First Citizens and Danske Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Citizens and Danske Bank
The main advantage of trading using opposite First Citizens and Danske Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Citizens position performs unexpectedly, Danske 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 Danske Bank will offset losses from the drop in Danske Bank's long position.| First Citizens vs. First Citizens BancShares | First Citizens vs. Farmers And Merchants | First Citizens vs. Fentura Financial | First Citizens vs. First Keystone Corp |
| Danske Bank vs. Israel Discount Bank | Danske Bank vs. Baraboo Bancorporation | Danske Bank vs. Schweizerische Nationalbank | Danske Bank vs. Jyske 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |