Correlation Between HomeStreet and Jyske Bank
Can any of the company-specific risk be diversified away by investing in both HomeStreet and Jyske Bank 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 HomeStreet and Jyske Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HomeStreet and Jyske Bank AS, you can compare the effects of market volatilities on HomeStreet and Jyske Bank 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 HomeStreet with a short position of Jyske Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of HomeStreet and Jyske Bank.
Diversification Opportunities for HomeStreet and Jyske Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HomeStreet and Jyske is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HomeStreet and Jyske Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jyske Bank AS and HomeStreet 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 HomeStreet are associated (or correlated) with Jyske Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jyske Bank AS has no effect on the direction of HomeStreet i.e., HomeStreet and Jyske Bank go up and down completely randomly.
Pair Corralation between HomeStreet and Jyske Bank
Given the investment horizon of 90 days HomeStreet is expected to generate 20.34 times more return on investment than Jyske Bank. However, HomeStreet is 20.34 times more volatile than Jyske Bank AS. It trades about 0.06 of its potential returns per unit of risk. Jyske Bank AS is currently generating about -0.01 per unit of risk. If you would invest 672.00 in HomeStreet on August 31, 2024 and sell it today you would earn a total of 516.00 from holding HomeStreet or generate 76.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
HomeStreet vs. Jyske Bank AS
Performance |
| Timeline |
| HomeStreet |
| Jyske Bank AS |
HomeStreet and Jyske Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HomeStreet and Jyske Bank
The main advantage of trading using opposite HomeStreet and Jyske Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HomeStreet position performs unexpectedly, Jyske Bank 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 Bank will offset losses from the drop in Jyske Bank's long position.| HomeStreet vs. Heartland Financial USA | HomeStreet vs. Heritage Commerce Corp | HomeStreet vs. Business First Bancshares | HomeStreet vs. German American Bancorp |
| Jyske Bank vs. Baraboo Bancorporation | Jyske Bank vs. Schweizerische Nationalbank | Jyske Bank vs. Danske Bank AS | Jyske Bank vs. Absa Group Limited |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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