Correlation Between Gyldendal and Strategic Investments
Can any of the company-specific risk be diversified away by investing in both Gyldendal and Strategic Investments 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 Gyldendal and Strategic Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gyldendal AS and Strategic Investments AS, you can compare the effects of market volatilities on Gyldendal and Strategic Investments 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 Gyldendal with a short position of Strategic Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gyldendal and Strategic Investments.
Diversification Opportunities for Gyldendal and Strategic Investments
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gyldendal and Strategic is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Gyldendal AS and Strategic Investments AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Investments and Gyldendal 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 Gyldendal AS are associated (or correlated) with Strategic Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Investments has no effect on the direction of Gyldendal i.e., Gyldendal and Strategic Investments go up and down completely randomly.
Pair Corralation between Gyldendal and Strategic Investments
Assuming the 90 days trading horizon Gyldendal AS is expected to generate 1.62 times more return on investment than Strategic Investments. However, Gyldendal is 1.62 times more volatile than Strategic Investments AS. It trades about 0.01 of its potential returns per unit of risk. Strategic Investments AS is currently generating about -0.01 per unit of risk. If you would invest 165,000 in Gyldendal AS on November 27, 2024 and sell it today you would lose (27,000) from holding Gyldendal AS or give up 16.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gyldendal AS vs. Strategic Investments AS
Performance |
| Timeline |
| Gyldendal AS |
| Strategic Investments |
Gyldendal and Strategic Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gyldendal and Strategic Investments
The main advantage of trading using opposite Gyldendal and Strategic Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gyldendal position performs unexpectedly, Strategic Investments 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 Strategic Investments will offset losses from the drop in Strategic Investments' long position.| Gyldendal vs. Gyldendal AS | Gyldendal vs. Danske Andelskassers Bank | Gyldendal vs. Laan Spar Bank | Gyldendal vs. Kreditbanken AS |
| Strategic Investments vs. Newcap Holding AS | Strategic Investments vs. SKAKO AS | Strategic Investments vs. Rovsing 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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