Correlation Between Jyske Bank and BankIn Bredygt
Can any of the company-specific risk be diversified away by investing in both Jyske Bank and BankIn Bredygt 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 BankIn Bredygt 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 BankIn Bredygt Klimaakt, you can compare the effects of market volatilities on Jyske Bank and BankIn Bredygt 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 BankIn Bredygt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jyske Bank and BankIn Bredygt.
Diversification Opportunities for Jyske Bank and BankIn Bredygt
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jyske and BankIn is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Jyske Bank AS and BankIn Bredygt Klimaakt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankIn Bredygt Klimaakt 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 BankIn Bredygt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankIn Bredygt Klimaakt has no effect on the direction of Jyske Bank i.e., Jyske Bank and BankIn Bredygt go up and down completely randomly.
Pair Corralation between Jyske Bank and BankIn Bredygt
Assuming the 90 days trading horizon Jyske Bank AS is expected to under-perform the BankIn Bredygt. In addition to that, Jyske Bank is 1.83 times more volatile than BankIn Bredygt Klimaakt. It trades about -0.17 of its total potential returns per unit of risk. BankIn Bredygt Klimaakt is currently generating about 0.04 per unit of volatility. If you would invest 10,660 in BankIn Bredygt Klimaakt on August 29, 2024 and sell it today you would earn a total of 75.00 from holding BankIn Bredygt Klimaakt or generate 0.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 78.26% |
| Values | Daily Returns |
Jyske Bank AS vs. BankIn Bredygt Klimaakt
Performance |
| Timeline |
| Jyske Bank AS |
| BankIn Bredygt Klimaakt |
Jyske Bank and BankIn Bredygt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jyske Bank and BankIn Bredygt
The main advantage of trading using opposite Jyske Bank and BankIn Bredygt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jyske Bank position performs unexpectedly, BankIn Bredygt 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 BankIn Bredygt will offset losses from the drop in BankIn Bredygt's long position.| Jyske Bank vs. Fynske Bank AS | Jyske Bank vs. Ringkjoebing Landbobank AS | Jyske Bank vs. BankIn Bredygt Klimaakt | Jyske Bank vs. Danske Andelskassers Bank |
| BankIn Bredygt vs. Novo Nordisk AS | BankIn Bredygt vs. Nordea Bank Abp | BankIn Bredygt vs. DSV Panalpina AS | BankIn Bredygt vs. AP Mller |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |