Correlation Between Fynske Bank and Danske Invest
Can any of the company-specific risk be diversified away by investing in both Fynske Bank and Danske Invest 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 Danske Invest 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 Danske Invest Europa, you can compare the effects of market volatilities on Fynske Bank and Danske Invest 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 Danske Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fynske Bank and Danske Invest.
Diversification Opportunities for Fynske Bank and Danske Invest
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fynske and Danske is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Fynske Bank AS and Danske Invest Europa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Danske Invest Europa 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 Danske Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Danske Invest Europa has no effect on the direction of Fynske Bank i.e., Fynske Bank and Danske Invest go up and down completely randomly.
Pair Corralation between Fynske Bank and Danske Invest
Assuming the 90 days trading horizon Fynske Bank AS is expected to under-perform the Danske Invest. In addition to that, Fynske Bank is 1.91 times more volatile than Danske Invest Europa. It trades about -0.01 of its total potential returns per unit of risk. Danske Invest Europa is currently generating about 0.04 per unit of volatility. If you would invest 12,388 in Danske Invest Europa on September 3, 2024 and sell it today you would earn a total of 757.00 from holding Danske Invest Europa or generate 6.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fynske Bank AS vs. Danske Invest Europa
Performance |
| Timeline |
| Fynske Bank AS |
| Danske Invest Europa |
Fynske Bank and Danske Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fynske Bank and Danske Invest
The main advantage of trading using opposite Fynske Bank and Danske Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fynske Bank position performs unexpectedly, Danske Invest 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 Danske Invest will offset losses from the drop in Danske Invest's long position.| Fynske Bank vs. FLSmidth Co | Fynske Bank vs. Danske Bank AS | Fynske Bank vs. ISS AS | Fynske Bank vs. DSV Panalpina AS |
| Danske Invest vs. Skjern Bank AS | Danske Invest vs. Fynske Bank AS | Danske Invest vs. Nordea Bank Abp | Danske Invest vs. Ringkjoebing Landbobank 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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