Correlation Between HusCompagniet and Nykredit Invest
Can any of the company-specific risk be diversified away by investing in both HusCompagniet and Nykredit 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 HusCompagniet and Nykredit Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HusCompagniet AS and Nykredit Invest Korte, you can compare the effects of market volatilities on HusCompagniet and Nykredit 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 Nykredit Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of HusCompagniet and Nykredit Invest.
Diversification Opportunities for HusCompagniet and Nykredit Invest
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HusCompagniet and Nykredit is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding HusCompagniet AS and Nykredit Invest Korte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nykredit Invest Korte 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 Nykredit Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nykredit Invest Korte has no effect on the direction of HusCompagniet i.e., HusCompagniet and Nykredit Invest go up and down completely randomly.
Pair Corralation between HusCompagniet and Nykredit Invest
Assuming the 90 days trading horizon HusCompagniet AS is expected to under-perform the Nykredit Invest. In addition to that, HusCompagniet is 28.1 times more volatile than Nykredit Invest Korte. It trades about -0.13 of its total potential returns per unit of risk. Nykredit Invest Korte is currently generating about 0.23 per unit of volatility. If you would invest 9,868 in Nykredit Invest Korte on September 13, 2024 and sell it today you would earn a total of 70.00 from holding Nykredit Invest Korte or generate 0.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HusCompagniet AS vs. Nykredit Invest Korte
Performance |
| Timeline |
| HusCompagniet AS |
| Nykredit Invest Korte |
HusCompagniet and Nykredit Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HusCompagniet and Nykredit Invest
The main advantage of trading using opposite HusCompagniet and Nykredit Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HusCompagniet position performs unexpectedly, Nykredit 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 Nykredit Invest will offset losses from the drop in Nykredit Invest's long position.| HusCompagniet vs. Matas AS | HusCompagniet vs. Netcompany Group AS | HusCompagniet vs. FLSmidth Co | HusCompagniet vs. GN Store Nord |
| Nykredit Invest vs. Novo Nordisk AS | Nykredit Invest vs. Nordea Bank Abp | Nykredit Invest vs. DSV Panalpina AS | Nykredit 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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