Correlation Between Fundamental Invest and Skjern Bank
Can any of the company-specific risk be diversified away by investing in both Fundamental Invest 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 Fundamental Invest and Skjern Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fundamental Invest Stock and Skjern Bank AS, you can compare the effects of market volatilities on Fundamental Invest 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 Fundamental Invest with a short position of Skjern Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fundamental Invest and Skjern Bank.
Diversification Opportunities for Fundamental Invest and Skjern Bank
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fundamental and Skjern is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Fundamental Invest Stock 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 Fundamental Invest 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 Fundamental Invest Stock 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 Fundamental Invest i.e., Fundamental Invest and Skjern Bank go up and down completely randomly.
Pair Corralation between Fundamental Invest and Skjern Bank
Assuming the 90 days trading horizon Fundamental Invest Stock is expected to generate 0.97 times more return on investment than Skjern Bank. However, Fundamental Invest Stock is 1.03 times less risky than Skjern Bank. It trades about -0.16 of its potential returns per unit of risk. Skjern Bank AS is currently generating about -0.3 per unit of risk. If you would invest 20,136 in Fundamental Invest Stock on August 29, 2024 and sell it today you would lose (819.00) from holding Fundamental Invest Stock or give up 4.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fundamental Invest Stock vs. Skjern Bank AS
Performance |
| Timeline |
| Fundamental Invest Stock |
| Skjern Bank AS |
Fundamental Invest and Skjern Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fundamental Invest and Skjern Bank
The main advantage of trading using opposite Fundamental Invest and Skjern Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fundamental Invest 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.| Fundamental Invest vs. Novo Nordisk AS | Fundamental Invest vs. Nordea Bank Abp | Fundamental Invest vs. DSV Panalpina AS | Fundamental Invest vs. AP Mller |
| Skjern Bank vs. Dataproces Group AS | Skjern Bank vs. cBrain AS | Skjern Bank vs. ALK Abell AS | Skjern Bank vs. ChemoMetec 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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