Correlation Between Jyske Invest and Handelsinvest Danmark
Can any of the company-specific risk be diversified away by investing in both Jyske Invest and Handelsinvest Danmark 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 Jyske Invest and Handelsinvest Danmark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jyske Invest Lange and Handelsinvest Danmark, you can compare the effects of market volatilities on Jyske Invest and Handelsinvest Danmark 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 Jyske Invest with a short position of Handelsinvest Danmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jyske Invest and Handelsinvest Danmark.
Diversification Opportunities for Jyske Invest and Handelsinvest Danmark
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jyske and Handelsinvest is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Jyske Invest Lange and Handelsinvest Danmark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Handelsinvest Danmark and Jyske 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 Jyske Invest Lange are associated (or correlated) with Handelsinvest Danmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Handelsinvest Danmark has no effect on the direction of Jyske Invest i.e., Jyske Invest and Handelsinvest Danmark go up and down completely randomly.
Pair Corralation between Jyske Invest and Handelsinvest Danmark
Assuming the 90 days trading horizon Jyske Invest Lange is expected to generate 0.11 times more return on investment than Handelsinvest Danmark. However, Jyske Invest Lange is 8.81 times less risky than Handelsinvest Danmark. It trades about 0.25 of its potential returns per unit of risk. Handelsinvest Danmark is currently generating about -0.13 per unit of risk. If you would invest 9,205 in Jyske Invest Lange on August 30, 2024 and sell it today you would earn a total of 63.00 from holding Jyske Invest Lange or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jyske Invest Lange vs. Handelsinvest Danmark
Performance |
| Timeline |
| Jyske Invest Lange |
| Handelsinvest Danmark |
Jyske Invest and Handelsinvest Danmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jyske Invest and Handelsinvest Danmark
The main advantage of trading using opposite Jyske Invest and Handelsinvest Danmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jyske Invest position performs unexpectedly, Handelsinvest Danmark 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 Handelsinvest Danmark will offset losses from the drop in Handelsinvest Danmark's long position.| Jyske Invest vs. Nordea Bank Abp | Jyske Invest vs. Kreditbanken AS | Jyske Invest vs. PARKEN Sport Entertainment | Jyske Invest vs. Hvidbjerg Bank |
| Handelsinvest Danmark vs. Sparinvest Lange | Handelsinvest Danmark vs. Investeringsforeningen Danske Invest | Handelsinvest Danmark vs. Sparinv SICAV |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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