Correlation Between Fynske Bank and Moens Bank
Can any of the company-specific risk be diversified away by investing in both Fynske Bank and Moens 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 Moens 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 Moens Bank AS, you can compare the effects of market volatilities on Fynske Bank and Moens 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 Moens Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fynske Bank and Moens Bank.
Diversification Opportunities for Fynske Bank and Moens Bank
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fynske and Moens is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Fynske Bank AS and Moens Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moens 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 Moens Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moens Bank AS has no effect on the direction of Fynske Bank i.e., Fynske Bank and Moens Bank go up and down completely randomly.
Pair Corralation between Fynske Bank and Moens Bank
Assuming the 90 days trading horizon Fynske Bank AS is expected to generate 1.13 times more return on investment than Moens Bank. However, Fynske Bank is 1.13 times more volatile than Moens Bank AS. It trades about -0.1 of its potential returns per unit of risk. Moens Bank AS is currently generating about -0.12 per unit of risk. If you would invest 14,800 in Fynske Bank AS on August 25, 2024 and sell it today you would lose (500.00) from holding Fynske Bank AS or give up 3.38% 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. Moens Bank AS
Performance |
| Timeline |
| Fynske Bank AS |
| Moens Bank AS |
Fynske Bank and Moens Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fynske Bank and Moens Bank
The main advantage of trading using opposite Fynske Bank and Moens Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fynske Bank position performs unexpectedly, Moens 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 Moens Bank will offset losses from the drop in Moens Bank's long position.| Fynske Bank vs. Skjern Bank AS | Fynske Bank vs. Djurslands Bank | Fynske Bank vs. Sparekassen Sjaelland Fyn AS | Fynske Bank vs. Groenlandsbanken AS |
| Moens Bank vs. Dataproces Group AS | Moens Bank vs. cBrain AS | Moens Bank vs. ALK Abell AS | Moens Bank vs. ChemoMetec 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |