Correlation Between Handelsinvest Danmark and BAIGAI
Can any of the company-specific risk be diversified away by investing in both Handelsinvest Danmark and BAIGAI 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 Handelsinvest Danmark and BAIGAI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Handelsinvest Danmark and Investeringsforeningen Bankinvest , you can compare the effects of market volatilities on Handelsinvest Danmark and BAIGAI 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 Handelsinvest Danmark with a short position of BAIGAI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Handelsinvest Danmark and BAIGAI.
Diversification Opportunities for Handelsinvest Danmark and BAIGAI
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Handelsinvest and BAIGAI is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Handelsinvest Danmark and Investeringsforeningen Bankinv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investeringsforeningen and Handelsinvest Danmark 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 Handelsinvest Danmark are associated (or correlated) with BAIGAI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investeringsforeningen has no effect on the direction of Handelsinvest Danmark i.e., Handelsinvest Danmark and BAIGAI go up and down completely randomly.
Pair Corralation between Handelsinvest Danmark and BAIGAI
Assuming the 90 days trading horizon Handelsinvest Danmark is expected to under-perform the BAIGAI. In addition to that, Handelsinvest Danmark is 2.07 times more volatile than Investeringsforeningen Bankinvest . It trades about -0.25 of its total potential returns per unit of risk. Investeringsforeningen Bankinvest is currently generating about 0.22 per unit of volatility. If you would invest 14,546 in Investeringsforeningen Bankinvest on November 4, 2024 and sell it today you would earn a total of 481.00 from holding Investeringsforeningen Bankinvest or generate 3.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Handelsinvest Danmark vs. Investeringsforeningen Bankinv
Performance |
| Timeline |
| Handelsinvest Danmark |
| Investeringsforeningen |
Handelsinvest Danmark and BAIGAI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Handelsinvest Danmark and BAIGAI
The main advantage of trading using opposite Handelsinvest Danmark and BAIGAI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Handelsinvest Danmark position performs unexpectedly, BAIGAI 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 BAIGAI will offset losses from the drop in BAIGAI's long position.| Handelsinvest Danmark vs. Sparinvest Lange | Handelsinvest Danmark vs. Investeringsforeningen Danske Invest | Handelsinvest Danmark vs. Sparinv SICAV | Handelsinvest Danmark vs. Sparinvest Value Emerging |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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