Correlation Between Groenlandsbanken and Jyske Invest
Can any of the company-specific risk be diversified away by investing in both Groenlandsbanken and Jyske 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 Groenlandsbanken and Jyske Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Groenlandsbanken AS and Jyske Invest Hjt, you can compare the effects of market volatilities on Groenlandsbanken and Jyske 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 Groenlandsbanken with a short position of Jyske Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groenlandsbanken and Jyske Invest.
Diversification Opportunities for Groenlandsbanken and Jyske Invest
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Groenlandsbanken and Jyske is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Groenlandsbanken AS and Jyske Invest Hjt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jyske Invest Hjt and Groenlandsbanken 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 Groenlandsbanken AS are associated (or correlated) with Jyske Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jyske Invest Hjt has no effect on the direction of Groenlandsbanken i.e., Groenlandsbanken and Jyske Invest go up and down completely randomly.
Pair Corralation between Groenlandsbanken and Jyske Invest
Assuming the 90 days trading horizon Groenlandsbanken AS is expected to generate 4.11 times more return on investment than Jyske Invest. However, Groenlandsbanken is 4.11 times more volatile than Jyske Invest Hjt. It trades about 0.04 of its potential returns per unit of risk. Jyske Invest Hjt is currently generating about 0.07 per unit of risk. If you would invest 59,063 in Groenlandsbanken AS on September 1, 2024 and sell it today you would earn a total of 10,937 from holding Groenlandsbanken AS or generate 18.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.91% |
| Values | Daily Returns |
Groenlandsbanken AS vs. Jyske Invest Hjt
Performance |
| Timeline |
| Groenlandsbanken |
| Jyske Invest Hjt |
Groenlandsbanken and Jyske Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groenlandsbanken and Jyske Invest
The main advantage of trading using opposite Groenlandsbanken and Jyske Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groenlandsbanken position performs unexpectedly, Jyske 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 Jyske Invest will offset losses from the drop in Jyske Invest's long position.| Groenlandsbanken vs. Sydbank AS | Groenlandsbanken vs. Jyske Bank AS | Groenlandsbanken vs. Alm Brand | Groenlandsbanken vs. Nordea Bank Abp |
| Jyske Invest vs. Novo Nordisk AS | Jyske Invest vs. Nordea Bank Abp | Jyske Invest vs. DSV Panalpina AS | Jyske 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |