Correlation Between Jyske Bank and Aquaporin
Can any of the company-specific risk be diversified away by investing in both Jyske Bank and Aquaporin 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 Aquaporin 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 Aquaporin AS, you can compare the effects of market volatilities on Jyske Bank and Aquaporin 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 Aquaporin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jyske Bank and Aquaporin.
Diversification Opportunities for Jyske Bank and Aquaporin
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jyske and Aquaporin is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Jyske Bank AS and Aquaporin AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquaporin 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 Aquaporin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aquaporin AS has no effect on the direction of Jyske Bank i.e., Jyske Bank and Aquaporin go up and down completely randomly.
Pair Corralation between Jyske Bank and Aquaporin
Assuming the 90 days trading horizon Jyske Bank AS is expected to generate 0.39 times more return on investment than Aquaporin. However, Jyske Bank AS is 2.57 times less risky than Aquaporin. It trades about 0.03 of its potential returns per unit of risk. Aquaporin AS is currently generating about -0.02 per unit of risk. If you would invest 51,750 in Jyske Bank AS on November 5, 2024 and sell it today you would earn a total of 350.00 from holding Jyske Bank AS or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jyske Bank AS vs. Aquaporin AS
Performance |
| Timeline |
| Jyske Bank AS |
| Aquaporin AS |
Jyske Bank and Aquaporin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jyske Bank and Aquaporin
The main advantage of trading using opposite Jyske Bank and Aquaporin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jyske Bank position performs unexpectedly, Aquaporin 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 Aquaporin will offset losses from the drop in Aquaporin's long position.| Jyske Bank vs. BankInv Kort HY | Jyske Bank vs. PARKEN Sport Entertainment | Jyske Bank vs. Nordinvestments AS | Jyske Bank vs. Embla Medical hf |
| Aquaporin vs. Green Hydrogen Systems | Aquaporin vs. FOM Technologies AS | Aquaporin vs. ALK Abell AS | Aquaporin vs. Trifork Holding AG |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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