Correlation Between HusCompagniet and Maj Invest
Specify exactly 2 symbols:
By analyzing existing cross correlation between HusCompagniet AS and Maj Invest Glob, you can compare the effects of market volatilities on HusCompagniet and Maj 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 HusCompagniet with a short position of Maj Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of HusCompagniet and Maj Invest.
Diversification Opportunities for HusCompagniet and Maj Invest
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HusCompagniet and Maj is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding HusCompagniet AS and Maj Invest Glob in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maj Invest Glob and HusCompagniet 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 HusCompagniet AS are associated (or correlated) with Maj Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maj Invest Glob has no effect on the direction of HusCompagniet i.e., HusCompagniet and Maj Invest go up and down completely randomly.
Pair Corralation between HusCompagniet and Maj Invest
Assuming the 90 days trading horizon HusCompagniet AS is expected to under-perform the Maj Invest. In addition to that, HusCompagniet is 3.04 times more volatile than Maj Invest Glob. It trades about -0.08 of its total potential returns per unit of risk. Maj Invest Glob is currently generating about 0.03 per unit of volatility. If you would invest 14,090 in Maj Invest Glob on September 13, 2024 and sell it today you would earn a total of 50.00 from holding Maj Invest Glob or generate 0.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
HusCompagniet AS vs. Maj Invest Glob
Performance |
| Timeline |
| HusCompagniet AS |
| Maj Invest Glob |
HusCompagniet and Maj Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HusCompagniet and Maj Invest
The main advantage of trading using opposite HusCompagniet and Maj Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HusCompagniet position performs unexpectedly, Maj 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 Maj Invest will offset losses from the drop in Maj Invest's long position.| HusCompagniet vs. Matas AS | HusCompagniet vs. Netcompany Group AS | HusCompagniet vs. FLSmidth Co | HusCompagniet vs. GN Store Nord |
| Maj Invest vs. Groenlandsbanken AS | Maj Invest vs. North Media AS | Maj Invest vs. Nordfyns Bank AS | Maj Invest vs. Embla Medical hf |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |