Correlation Between Hvidbjerg Bank and Carnegie Wealth
Can any of the company-specific risk be diversified away by investing in both Hvidbjerg Bank and Carnegie Wealth 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 Hvidbjerg Bank and Carnegie Wealth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hvidbjerg Bank and Carnegie Wealth Management, you can compare the effects of market volatilities on Hvidbjerg Bank and Carnegie Wealth 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 Hvidbjerg Bank with a short position of Carnegie Wealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hvidbjerg Bank and Carnegie Wealth.
Diversification Opportunities for Hvidbjerg Bank and Carnegie Wealth
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hvidbjerg and Carnegie is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Hvidbjerg Bank and Carnegie Wealth Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carnegie Wealth Mana and Hvidbjerg Bank 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 Hvidbjerg Bank are associated (or correlated) with Carnegie Wealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carnegie Wealth Mana has no effect on the direction of Hvidbjerg Bank i.e., Hvidbjerg Bank and Carnegie Wealth go up and down completely randomly.
Pair Corralation between Hvidbjerg Bank and Carnegie Wealth
Assuming the 90 days trading horizon Hvidbjerg Bank is expected to generate 1.31 times more return on investment than Carnegie Wealth. However, Hvidbjerg Bank is 1.31 times more volatile than Carnegie Wealth Management. It trades about 0.03 of its potential returns per unit of risk. Carnegie Wealth Management is currently generating about 0.01 per unit of risk. If you would invest 10,300 in Hvidbjerg Bank on August 29, 2024 and sell it today you would earn a total of 1,500 from holding Hvidbjerg Bank or generate 14.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.47% |
| Values | Daily Returns |
Hvidbjerg Bank vs. Carnegie Wealth Management
Performance |
| Timeline |
| Hvidbjerg Bank |
| Carnegie Wealth Mana |
Hvidbjerg Bank and Carnegie Wealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hvidbjerg Bank and Carnegie Wealth
The main advantage of trading using opposite Hvidbjerg Bank and Carnegie Wealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hvidbjerg Bank position performs unexpectedly, Carnegie Wealth 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 Carnegie Wealth will offset losses from the drop in Carnegie Wealth's long position.| Hvidbjerg Bank vs. Dataproces Group AS | Hvidbjerg Bank vs. cBrain AS | Hvidbjerg Bank vs. ALK Abell AS | Hvidbjerg Bank vs. ChemoMetec AS |
| Carnegie Wealth vs. Strategic Investments AS | Carnegie Wealth vs. TROPHY GAMES Development | Carnegie Wealth vs. Ringkjoebing Landbobank AS | Carnegie Wealth vs. Sydbank AS |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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