Correlation Between Fynske Bank and Djurslands Bank
Can any of the company-specific risk be diversified away by investing in both Fynske Bank and Djurslands 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 Fynske Bank and Djurslands Bank 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 Djurslands Bank, you can compare the effects of market volatilities on Fynske Bank and Djurslands 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 Fynske Bank with a short position of Djurslands Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fynske Bank and Djurslands Bank.
Diversification Opportunities for Fynske Bank and Djurslands Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fynske and Djurslands is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fynske Bank AS and Djurslands Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Djurslands Bank 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 Djurslands Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Djurslands Bank has no effect on the direction of Fynske Bank i.e., Fynske Bank and Djurslands Bank go up and down completely randomly.
Pair Corralation between Fynske Bank and Djurslands Bank
Assuming the 90 days trading horizon Fynske Bank AS is expected to under-perform the Djurslands Bank. In addition to that, Fynske Bank is 1.58 times more volatile than Djurslands Bank. It trades about -0.14 of its total potential returns per unit of risk. Djurslands Bank is currently generating about -0.04 per unit of volatility. If you would invest 52,000 in Djurslands Bank on August 30, 2024 and sell it today you would lose (500.00) from holding Djurslands Bank or give up 0.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Fynske Bank AS vs. Djurslands Bank
Performance |
| Timeline |
| Fynske Bank AS |
| Djurslands Bank |
Fynske Bank and Djurslands Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fynske Bank and Djurslands Bank
The main advantage of trading using opposite Fynske Bank and Djurslands Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fynske Bank position performs unexpectedly, Djurslands 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 Djurslands Bank will offset losses from the drop in Djurslands Bank'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 |
| Djurslands Bank vs. Sydbank AS | Djurslands Bank vs. Jyske Bank AS | Djurslands Bank vs. Alm Brand | Djurslands Bank vs. Nordea Bank Abp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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