Correlation Between Groenlandsbanken and WindowMaster International
Can any of the company-specific risk be diversified away by investing in both Groenlandsbanken and WindowMaster International 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 WindowMaster International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Groenlandsbanken AS and WindowMaster International AS, you can compare the effects of market volatilities on Groenlandsbanken and WindowMaster International 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 WindowMaster International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groenlandsbanken and WindowMaster International.
Diversification Opportunities for Groenlandsbanken and WindowMaster International
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Groenlandsbanken and WindowMaster is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Groenlandsbanken AS and WindowMaster International AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WindowMaster International 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 WindowMaster International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WindowMaster International has no effect on the direction of Groenlandsbanken i.e., Groenlandsbanken and WindowMaster International go up and down completely randomly.
Pair Corralation between Groenlandsbanken and WindowMaster International
Assuming the 90 days trading horizon Groenlandsbanken AS is expected to generate 0.36 times more return on investment than WindowMaster International. However, Groenlandsbanken AS is 2.76 times less risky than WindowMaster International. It trades about 0.04 of its potential returns per unit of risk. WindowMaster International AS is currently generating about 0.01 per unit of risk. If you would invest 57,611 in Groenlandsbanken AS on September 3, 2024 and sell it today you would earn a total of 12,389 from holding Groenlandsbanken AS or generate 21.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Groenlandsbanken AS vs. WindowMaster International AS
Performance |
| Timeline |
| Groenlandsbanken |
| WindowMaster International |
Groenlandsbanken and WindowMaster International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groenlandsbanken and WindowMaster International
The main advantage of trading using opposite Groenlandsbanken and WindowMaster International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groenlandsbanken position performs unexpectedly, WindowMaster International 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 WindowMaster International will offset losses from the drop in WindowMaster International's long position.| Groenlandsbanken vs. Skjern Bank AS | Groenlandsbanken vs. Lollands Bank | Groenlandsbanken vs. Ringkjoebing Landbobank AS | Groenlandsbanken vs. Kreditbanken AS |
| WindowMaster International vs. FOM Technologies AS | WindowMaster International vs. LED iBond International | WindowMaster International vs. BioPorto | WindowMaster International vs. Dataproces Group 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |