Correlation Between H Lundbeck and PFA Invest
Can any of the company-specific risk be diversified away by investing in both H Lundbeck and PFA 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 H Lundbeck and PFA Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between H Lundbeck AS and PFA Invest Kreditobligationer, you can compare the effects of market volatilities on H Lundbeck and PFA 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 H Lundbeck with a short position of PFA Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of H Lundbeck and PFA Invest.
Diversification Opportunities for H Lundbeck and PFA Invest
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HLUN-A and PFA is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding H Lundbeck AS and PFA Invest Kreditobligationer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PFA Invest Kreditobl and H Lundbeck 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 H Lundbeck AS are associated (or correlated) with PFA Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PFA Invest Kreditobl has no effect on the direction of H Lundbeck i.e., H Lundbeck and PFA Invest go up and down completely randomly.
Pair Corralation between H Lundbeck and PFA Invest
Assuming the 90 days trading horizon H Lundbeck AS is expected to generate 7.1 times more return on investment than PFA Invest. However, H Lundbeck is 7.1 times more volatile than PFA Invest Kreditobligationer. It trades about 0.05 of its potential returns per unit of risk. PFA Invest Kreditobligationer is currently generating about 0.09 per unit of risk. If you would invest 2,318 in H Lundbeck AS on October 12, 2024 and sell it today you would earn a total of 1,022 from holding H Lundbeck AS or generate 44.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
H Lundbeck AS vs. PFA Invest Kreditobligationer
Performance |
| Timeline |
| H Lundbeck AS |
| PFA Invest Kreditobl |
H Lundbeck and PFA Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with H Lundbeck and PFA Invest
The main advantage of trading using opposite H Lundbeck and PFA Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if H Lundbeck position performs unexpectedly, PFA 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 PFA Invest will offset losses from the drop in PFA Invest's long position.| H Lundbeck vs. GN Store Nord | H Lundbeck vs. FLSmidth Co | H Lundbeck vs. ALK Abell AS | H Lundbeck vs. Ambu AS |
| PFA Invest vs. Novo Nordisk AS | PFA Invest vs. Nordea Bank Abp | PFA Invest vs. DSV Panalpina AS | PFA 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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