Correlation Between Fynske Bank and Cessatech
Can any of the company-specific risk be diversified away by investing in both Fynske Bank and Cessatech 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 Cessatech 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 Cessatech AS, you can compare the effects of market volatilities on Fynske Bank and Cessatech 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 Cessatech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fynske Bank and Cessatech.
Diversification Opportunities for Fynske Bank and Cessatech
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Fynske and Cessatech is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Fynske Bank AS and Cessatech AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cessatech 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 Cessatech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cessatech AS has no effect on the direction of Fynske Bank i.e., Fynske Bank and Cessatech go up and down completely randomly.
Pair Corralation between Fynske Bank and Cessatech
Assuming the 90 days trading horizon Fynske Bank AS is expected to generate 0.33 times more return on investment than Cessatech. However, Fynske Bank AS is 3.07 times less risky than Cessatech. It trades about -0.01 of its potential returns per unit of risk. Cessatech AS is currently generating about -0.04 per unit of risk. If you would invest 15,100 in Fynske Bank AS on September 1, 2024 and sell it today you would lose (1,000.00) from holding Fynske Bank AS or give up 6.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.59% |
| Values | Daily Returns |
Fynske Bank AS vs. Cessatech AS
Performance |
| Timeline |
| Fynske Bank AS |
| Cessatech AS |
Fynske Bank and Cessatech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fynske Bank and Cessatech
The main advantage of trading using opposite Fynske Bank and Cessatech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fynske Bank position performs unexpectedly, Cessatech 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 Cessatech will offset losses from the drop in Cessatech's long position.| Fynske Bank vs. Sydbank AS | Fynske Bank vs. Jyske Bank AS | Fynske Bank vs. Alm Brand | Fynske Bank vs. Nordea Bank Abp |
| Cessatech vs. Novo Nordisk AS | Cessatech vs. Nordea Bank Abp | Cessatech vs. DSV Panalpina AS | Cessatech vs. AP Mller |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |