Correlation Between Formuepleje Mix and Skjern Bank
Can any of the company-specific risk be diversified away by investing in both Formuepleje Mix and Skjern 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 Formuepleje Mix and Skjern Bank 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 Skjern Bank AS, you can compare the effects of market volatilities on Formuepleje Mix and Skjern 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 Formuepleje Mix with a short position of Skjern Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Formuepleje Mix and Skjern Bank.
Diversification Opportunities for Formuepleje Mix and Skjern Bank
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Formuepleje and Skjern is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Formuepleje Mix Medium and Skjern Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skjern Bank 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 Skjern Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skjern Bank AS has no effect on the direction of Formuepleje Mix i.e., Formuepleje Mix and Skjern Bank go up and down completely randomly.
Pair Corralation between Formuepleje Mix and Skjern Bank
Assuming the 90 days trading horizon Formuepleje Mix Medium is expected to generate 0.71 times more return on investment than Skjern Bank. However, Formuepleje Mix Medium is 1.41 times less risky than Skjern Bank. It trades about 0.22 of its potential returns per unit of risk. Skjern Bank AS is currently generating about -0.2 per unit of risk. If you would invest 29,060 in Formuepleje Mix Medium on September 1, 2024 and sell it today you would earn a total of 890.00 from holding Formuepleje Mix Medium or generate 3.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Formuepleje Mix Medium vs. Skjern Bank AS
Performance |
| Timeline |
| Formuepleje Mix Medium |
| Skjern Bank AS |
Formuepleje Mix and Skjern Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Formuepleje Mix and Skjern Bank
The main advantage of trading using opposite Formuepleje Mix and Skjern Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Formuepleje Mix position performs unexpectedly, Skjern 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 Skjern Bank will offset losses from the drop in Skjern Bank's long position.| Formuepleje Mix vs. Novo Nordisk AS | Formuepleje Mix vs. Nordea Bank Abp | Formuepleje Mix vs. DSV Panalpina AS | Formuepleje Mix vs. AP Mller |
| Skjern Bank vs. Laan Spar Bank | Skjern Bank vs. Kreditbanken AS | Skjern Bank vs. Nordea Bank Abp | Skjern Bank vs. Formuepleje Mix Medium |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |