Correlation Between Formuepleje Mix and Konsolidator
Can any of the company-specific risk be diversified away by investing in both Formuepleje Mix and Konsolidator 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 Formuepleje Mix and Konsolidator into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Formuepleje Mix Medium and Konsolidator AS, you can compare the effects of market volatilities on Formuepleje Mix and Konsolidator 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 Formuepleje Mix with a short position of Konsolidator. Check out your portfolio center. Please also check ongoing floating volatility patterns of Formuepleje Mix and Konsolidator.
Diversification Opportunities for Formuepleje Mix and Konsolidator
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Formuepleje and Konsolidator is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Formuepleje Mix Medium and Konsolidator AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konsolidator AS and Formuepleje Mix 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 Formuepleje Mix Medium are associated (or correlated) with Konsolidator. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konsolidator AS has no effect on the direction of Formuepleje Mix i.e., Formuepleje Mix and Konsolidator go up and down completely randomly.
Pair Corralation between Formuepleje Mix and Konsolidator
Assuming the 90 days trading horizon Formuepleje Mix Medium is expected to generate 0.19 times more return on investment than Konsolidator. However, Formuepleje Mix Medium is 5.38 times less risky than Konsolidator. It trades about 0.18 of its potential returns per unit of risk. Konsolidator AS is currently generating about -0.07 per unit of risk. If you would invest 29,570 in Formuepleje Mix Medium on November 2, 2024 and sell it today you would earn a total of 410.00 from holding Formuepleje Mix Medium or generate 1.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Formuepleje Mix Medium vs. Konsolidator AS
Performance |
| Timeline |
| Formuepleje Mix Medium |
| Konsolidator AS |
Formuepleje Mix and Konsolidator Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Formuepleje Mix and Konsolidator
The main advantage of trading using opposite Formuepleje Mix and Konsolidator positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Formuepleje Mix position performs unexpectedly, Konsolidator 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 Konsolidator will offset losses from the drop in Konsolidator's long position.| Formuepleje Mix vs. Lollands Bank | Formuepleje Mix vs. Ringkjoebing Landbobank AS | Formuepleje Mix vs. BankInv Kort HY | Formuepleje Mix vs. Embla Medical hf |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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