Correlation Between Jyske Bank and Alefarm Brewing
Can any of the company-specific risk be diversified away by investing in both Jyske Bank and Alefarm Brewing 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 Bank and Alefarm Brewing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jyske Bank AS and Alefarm Brewing AS, you can compare the effects of market volatilities on Jyske Bank and Alefarm Brewing 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 Bank with a short position of Alefarm Brewing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jyske Bank and Alefarm Brewing.
Diversification Opportunities for Jyske Bank and Alefarm Brewing
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jyske and Alefarm is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Jyske Bank AS and Alefarm Brewing AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alefarm Brewing AS and Jyske Bank 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 Bank AS are associated (or correlated) with Alefarm Brewing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alefarm Brewing AS has no effect on the direction of Jyske Bank i.e., Jyske Bank and Alefarm Brewing go up and down completely randomly.
Pair Corralation between Jyske Bank and Alefarm Brewing
Assuming the 90 days trading horizon Jyske Bank AS is expected to generate 0.33 times more return on investment than Alefarm Brewing. However, Jyske Bank AS is 3.04 times less risky than Alefarm Brewing. It trades about 0.08 of its potential returns per unit of risk. Alefarm Brewing AS is currently generating about -0.16 per unit of risk. If you would invest 48,760 in Jyske Bank AS on September 3, 2024 and sell it today you would earn a total of 920.00 from holding Jyske Bank AS or generate 1.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jyske Bank AS vs. Alefarm Brewing AS
Performance |
| Timeline |
| Jyske Bank AS |
| Alefarm Brewing AS |
Jyske Bank and Alefarm Brewing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jyske Bank and Alefarm Brewing
The main advantage of trading using opposite Jyske Bank and Alefarm Brewing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jyske Bank position performs unexpectedly, Alefarm Brewing 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 Alefarm Brewing will offset losses from the drop in Alefarm Brewing's long position.| Jyske Bank vs. PARKEN Sport Entertainment | Jyske Bank vs. NTG Nordic Transport | Jyske Bank vs. Nordfyns Bank AS | Jyske Bank vs. BankInvest Value Globale |
| Alefarm Brewing vs. Prime Office AS | Alefarm Brewing vs. Jyske Bank AS | Alefarm Brewing vs. Danske Andelskassers Bank | Alefarm Brewing vs. PARKEN Sport Entertainment |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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