Correlation Between Jyske Invest and Maj Invest
Can any of the company-specific risk be diversified away by investing in both Jyske Invest and Maj Invest 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 Maj Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jyske Invest Nye and Maj Invest , you can compare the effects of market volatilities on Jyske Invest and Maj Invest 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 Maj Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jyske Invest and Maj Invest.
Diversification Opportunities for Jyske Invest and Maj Invest
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jyske and Maj is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Jyske Invest Nye and Maj Invest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maj Invest 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 Nye are associated (or correlated) with Maj Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maj Invest has no effect on the direction of Jyske Invest i.e., Jyske Invest and Maj Invest go up and down completely randomly.
Pair Corralation between Jyske Invest and Maj Invest
Assuming the 90 days trading horizon Jyske Invest Nye is expected to generate 2.16 times more return on investment than Maj Invest. However, Jyske Invest is 2.16 times more volatile than Maj Invest . It trades about 0.06 of its potential returns per unit of risk. Maj Invest is currently generating about 0.1 per unit of risk. If you would invest 8,756 in Jyske Invest Nye on August 28, 2024 and sell it today you would earn a total of 1,120 from holding Jyske Invest Nye or generate 12.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.76% |
| Values | Daily Returns |
Jyske Invest Nye vs. Maj Invest
Performance |
| Timeline |
| Jyske Invest Nye |
| Maj Invest |
Jyske Invest and Maj Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jyske Invest and Maj Invest
The main advantage of trading using opposite Jyske Invest and Maj Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jyske Invest position performs unexpectedly, Maj Invest 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 Maj Invest will offset losses from the drop in Maj Invest's long position.| Jyske Invest vs. Novo Nordisk AS | Jyske Invest vs. Nordea Bank Abp | Jyske Invest vs. DSV Panalpina AS | Jyske Invest vs. AP Mller |
| Maj Invest vs. Jyske Invest Nye | Maj Invest vs. Jyske Invest Korte | Maj Invest vs. Jyske Invest Nye | Maj Invest vs. Jyske Invest Virksomhedsobligationer |
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.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |