Correlation Between Fynske Bank and IA Invest
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By analyzing existing cross correlation between Fynske Bank AS and IA Invest Advice, you can compare the effects of market volatilities on Fynske Bank and IA 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 IA Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fynske Bank and IA Invest.
Diversification Opportunities for Fynske Bank and IA Invest
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fynske and IAIACVF is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Fynske Bank AS and IA Invest Advice in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IA Invest Advice 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 IA Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IA Invest Advice has no effect on the direction of Fynske Bank i.e., Fynske Bank and IA Invest go up and down completely randomly.
Pair Corralation between Fynske Bank and IA Invest
Assuming the 90 days trading horizon Fynske Bank is expected to generate 2.05 times less return on investment than IA Invest. In addition to that, Fynske Bank is 1.61 times more volatile than IA Invest Advice. It trades about 0.03 of its total potential returns per unit of risk. IA Invest Advice is currently generating about 0.09 per unit of volatility. If you would invest 12,170 in IA Invest Advice on October 29, 2024 and sell it today you would earn a total of 1,923 from holding IA Invest Advice or generate 15.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 34.96% |
| Values | Daily Returns |
Fynske Bank AS vs. IA Invest Advice
Performance |
| Timeline |
| Fynske Bank AS |
| IA Invest Advice |
Fynske Bank and IA Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fynske Bank and IA Invest
The main advantage of trading using opposite Fynske Bank and IA Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fynske Bank position performs unexpectedly, IA 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 IA Invest will offset losses from the drop in IA 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 |
| IA Invest vs. Novo Nordisk AS | IA Invest vs. Nordea Bank Abp | IA Invest vs. DSV Panalpina AS | IA Invest 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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