Correlation Between Fynske Bank and Carlsberg
Can any of the company-specific risk be diversified away by investing in both Fynske Bank and Carlsberg 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 Fynske Bank and Carlsberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fynske Bank AS and Carlsberg AS, you can compare the effects of market volatilities on Fynske Bank and Carlsberg 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 Fynske Bank with a short position of Carlsberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fynske Bank and Carlsberg.
Diversification Opportunities for Fynske Bank and Carlsberg
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fynske and Carlsberg is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Fynske Bank AS and Carlsberg AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlsberg AS and Fynske Bank 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 Fynske Bank AS are associated (or correlated) with Carlsberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlsberg AS has no effect on the direction of Fynske Bank i.e., Fynske Bank and Carlsberg go up and down completely randomly.
Pair Corralation between Fynske Bank and Carlsberg
Assuming the 90 days trading horizon Fynske Bank is expected to generate 3.8 times less return on investment than Carlsberg. In addition to that, Fynske Bank is 1.78 times more volatile than Carlsberg AS. It trades about 0.06 of its total potential returns per unit of risk. Carlsberg AS is currently generating about 0.38 per unit of volatility. If you would invest 68,700 in Carlsberg AS on November 7, 2024 and sell it today you would earn a total of 6,060 from holding Carlsberg AS or generate 8.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fynske Bank AS vs. Carlsberg AS
Performance |
| Timeline |
| Fynske Bank AS |
| Carlsberg AS |
Fynske Bank and Carlsberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fynske Bank and Carlsberg
The main advantage of trading using opposite Fynske Bank and Carlsberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fynske Bank position performs unexpectedly, Carlsberg 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 Carlsberg will offset losses from the drop in Carlsberg's long position.| Fynske Bank vs. Skjern Bank AS | Fynske Bank vs. Djurslands Bank | Fynske Bank vs. Sparekassen Sjaelland Fyn AS | Fynske Bank vs. Groenlandsbanken AS |
| Carlsberg vs. BankInv Kort HY | Carlsberg vs. NTG Nordic Transport | Carlsberg vs. Moens Bank AS | Carlsberg vs. Scandinavian Investment Group |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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