Correlation Between Investin Optimal and Fynske Bank
Can any of the company-specific risk be diversified away by investing in both Investin Optimal and Fynske Bank 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 Fynske Bank 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 Fynske Bank AS, you can compare the effects of market volatilities on Investin Optimal and Fynske Bank 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 Fynske Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investin Optimal and Fynske Bank.
Diversification Opportunities for Investin Optimal and Fynske Bank
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Investin and Fynske is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Investin Optimal Stabil and Fynske Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fynske Bank AS 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 Fynske Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fynske Bank AS has no effect on the direction of Investin Optimal i.e., Investin Optimal and Fynske Bank go up and down completely randomly.
Pair Corralation between Investin Optimal and Fynske Bank
Assuming the 90 days trading horizon Investin Optimal Stabil is expected to generate 0.15 times more return on investment than Fynske Bank. However, Investin Optimal Stabil is 6.58 times less risky than Fynske Bank. It trades about 0.15 of its potential returns per unit of risk. Fynske Bank AS is currently generating about 0.01 per unit of risk. If you would invest 12,743 in Investin Optimal Stabil on September 25, 2024 and sell it today you would earn a total of 2,085 from holding Investin Optimal Stabil or generate 16.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.76% |
| Values | Daily Returns |
Investin Optimal Stabil vs. Fynske Bank AS
Performance |
| Timeline |
| Investin Optimal Stabil |
| Fynske Bank AS |
Investin Optimal and Fynske Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investin Optimal and Fynske Bank
The main advantage of trading using opposite Investin Optimal and Fynske Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investin Optimal position performs unexpectedly, Fynske Bank 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 Fynske Bank will offset losses from the drop in Fynske Bank's long position.| Investin Optimal vs. Novo Nordisk AS | Investin Optimal vs. Nordea Bank Abp | Investin Optimal vs. DSV Panalpina AS | Investin Optimal vs. AP Mller |
| Fynske Bank vs. Novo Nordisk AS | Fynske Bank vs. Scandinavian Tobacco Group | Fynske Bank vs. ISS AS | Fynske Bank vs. FLSmidth Co |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |