Correlation Between Investin Optimal and Dataproces Group
Can any of the company-specific risk be diversified away by investing in both Investin Optimal and Dataproces Group 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 Investin Optimal and Dataproces Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investin Optimal Stabil and Dataproces Group AS, you can compare the effects of market volatilities on Investin Optimal and Dataproces Group 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 Investin Optimal with a short position of Dataproces Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investin Optimal and Dataproces Group.
Diversification Opportunities for Investin Optimal and Dataproces Group
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Investin and Dataproces is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Investin Optimal Stabil and Dataproces Group AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dataproces Group and Investin Optimal 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 Investin Optimal Stabil are associated (or correlated) with Dataproces Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dataproces Group has no effect on the direction of Investin Optimal i.e., Investin Optimal and Dataproces Group go up and down completely randomly.
Pair Corralation between Investin Optimal and Dataproces Group
Assuming the 90 days trading horizon Investin Optimal Stabil is expected to generate 0.14 times more return on investment than Dataproces Group. However, Investin Optimal Stabil is 7.09 times less risky than Dataproces Group. It trades about 0.13 of its potential returns per unit of risk. Dataproces Group AS is currently generating about -0.07 per unit of risk. If you would invest 14,725 in Investin Optimal Stabil on September 21, 2024 and sell it today you would earn a total of 100.00 from holding Investin Optimal Stabil or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Investin Optimal Stabil vs. Dataproces Group AS
Performance |
| Timeline |
| Investin Optimal Stabil |
| Dataproces Group |
Investin Optimal and Dataproces Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investin Optimal and Dataproces Group
The main advantage of trading using opposite Investin Optimal and Dataproces Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investin Optimal position performs unexpectedly, Dataproces Group 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 Dataproces Group will offset losses from the drop in Dataproces Group's long position.| Investin Optimal vs. Dataproces Group AS | Investin Optimal vs. Skjern Bank AS | Investin Optimal vs. BankInvest Value Globale | Investin Optimal vs. Kreditbanken AS |
| Dataproces Group vs. GN Store Nord | Dataproces Group vs. Ambu AS | Dataproces Group vs. ROCKWOOL International AS | Dataproces Group vs. Genmab 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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