Correlation Between IA Invest and Kreditbanken
Can any of the company-specific risk be diversified away by investing in both IA Invest and Kreditbanken 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 IA Invest and Kreditbanken into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IA Invest Peruma and Kreditbanken AS, you can compare the effects of market volatilities on IA Invest and Kreditbanken 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 IA Invest with a short position of Kreditbanken. Check out your portfolio center. Please also check ongoing floating volatility patterns of IA Invest and Kreditbanken.
Diversification Opportunities for IA Invest and Kreditbanken
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between IAIPGA and Kreditbanken is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding IA Invest Peruma and Kreditbanken AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kreditbanken AS and IA Invest 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 IA Invest Peruma are associated (or correlated) with Kreditbanken. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kreditbanken AS has no effect on the direction of IA Invest i.e., IA Invest and Kreditbanken go up and down completely randomly.
Pair Corralation between IA Invest and Kreditbanken
Assuming the 90 days trading horizon IA Invest Peruma is expected to generate 0.71 times more return on investment than Kreditbanken. However, IA Invest Peruma is 1.42 times less risky than Kreditbanken. It trades about 0.1 of its potential returns per unit of risk. Kreditbanken AS is currently generating about 0.04 per unit of risk. If you would invest 11,815 in IA Invest Peruma on September 19, 2024 and sell it today you would earn a total of 2,105 from holding IA Invest Peruma or generate 17.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 37.5% |
| Values | Daily Returns |
IA Invest Peruma vs. Kreditbanken AS
Performance |
| Timeline |
| IA Invest Peruma |
| Kreditbanken AS |
IA Invest and Kreditbanken Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IA Invest and Kreditbanken
The main advantage of trading using opposite IA Invest and Kreditbanken positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IA Invest position performs unexpectedly, Kreditbanken 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 Kreditbanken will offset losses from the drop in Kreditbanken's long position.| IA Invest vs. Kreditbanken AS | IA Invest vs. Laan Spar Bank | IA Invest vs. PARKEN Sport Entertainment | IA Invest vs. North Media AS |
| Kreditbanken vs. Lollands Bank | Kreditbanken vs. Groenlandsbanken AS | Kreditbanken vs. Skjern Bank AS | Kreditbanken vs. Djurslands Bank |
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 Stocks Directory module to find actively traded stocks across global markets.
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