Correlation Between Fynske Bank and Jyske Bank
Can any of the company-specific risk be diversified away by investing in both Fynske Bank and Jyske 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 Jyske 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 Jyske Bank AS, you can compare the effects of market volatilities on Fynske Bank and Jyske 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 Jyske Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fynske Bank and Jyske Bank.
Diversification Opportunities for Fynske Bank and Jyske Bank
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fynske and Jyske is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Fynske Bank AS and Jyske Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jyske Bank 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 Jyske Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jyske Bank AS has no effect on the direction of Fynske Bank i.e., Fynske Bank and Jyske Bank go up and down completely randomly.
Pair Corralation between Fynske Bank and Jyske Bank
Assuming the 90 days trading horizon Fynske Bank AS is expected to generate 0.58 times more return on investment than Jyske Bank. However, Fynske Bank AS is 1.71 times less risky than Jyske Bank. It trades about -0.06 of its potential returns per unit of risk. Jyske Bank AS is currently generating about -0.17 per unit of risk. If you would invest 14,400 in Fynske Bank AS on August 29, 2024 and sell it today you would lose (300.00) from holding Fynske Bank AS or give up 2.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fynske Bank AS vs. Jyske Bank AS
Performance |
| Timeline |
| Fynske Bank AS |
| Jyske Bank AS |
Fynske Bank and Jyske Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fynske Bank and Jyske Bank
The main advantage of trading using opposite Fynske Bank and Jyske Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fynske Bank position performs unexpectedly, Jyske 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 Jyske Bank will offset losses from the drop in Jyske 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 |
| Jyske Bank vs. Fynske Bank AS | Jyske Bank vs. Ringkjoebing Landbobank AS | Jyske Bank vs. BankIn Bredygt Klimaakt | Jyske Bank vs. Danske Andelskassers Bank |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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