Correlation Between GreenMobility and Jyske Bank
Can any of the company-specific risk be diversified away by investing in both GreenMobility 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 GreenMobility and Jyske Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenMobility AS and Jyske Bank AS, you can compare the effects of market volatilities on GreenMobility 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 GreenMobility with a short position of Jyske Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenMobility and Jyske Bank.
Diversification Opportunities for GreenMobility and Jyske Bank
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GreenMobility and Jyske is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding GreenMobility 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 GreenMobility 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 GreenMobility 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 GreenMobility i.e., GreenMobility and Jyske Bank go up and down completely randomly.
Pair Corralation between GreenMobility and Jyske Bank
Assuming the 90 days trading horizon GreenMobility AS is expected to generate 2.13 times more return on investment than Jyske Bank. However, GreenMobility is 2.13 times more volatile than Jyske Bank AS. It trades about 0.01 of its potential returns per unit of risk. Jyske Bank AS is currently generating about 0.02 per unit of risk. If you would invest 3,250 in GreenMobility AS on December 2, 2024 and sell it today you would lose (90.00) from holding GreenMobility AS or give up 2.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenMobility AS vs. Jyske Bank AS
Performance |
| Timeline |
| GreenMobility AS |
| Jyske Bank AS |
GreenMobility and Jyske Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenMobility and Jyske Bank
The main advantage of trading using opposite GreenMobility and Jyske Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenMobility 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.| GreenMobility vs. Vestjysk Bank AS | GreenMobility vs. Hvidbjerg Bank | GreenMobility vs. North Media AS | GreenMobility vs. Nordea Bank Abp |
| Jyske Bank vs. Kreditbanken AS | Jyske Bank vs. Ringkjoebing Landbobank AS | Jyske Bank vs. Scandinavian Tobacco Group | Jyske Bank vs. Scandinavian Investment Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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