Correlation Between Jyske Bank and Bavarian Nordic
Can any of the company-specific risk be diversified away by investing in both Jyske Bank and Bavarian Nordic 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 Bavarian Nordic 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 Bavarian Nordic, you can compare the effects of market volatilities on Jyske Bank and Bavarian Nordic 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 Bavarian Nordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jyske Bank and Bavarian Nordic.
Diversification Opportunities for Jyske Bank and Bavarian Nordic
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jyske and Bavarian is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Jyske Bank AS and Bavarian Nordic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bavarian Nordic 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 Bavarian Nordic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bavarian Nordic has no effect on the direction of Jyske Bank i.e., Jyske Bank and Bavarian Nordic go up and down completely randomly.
Pair Corralation between Jyske Bank and Bavarian Nordic
Assuming the 90 days trading horizon Jyske Bank AS is expected to generate 0.59 times more return on investment than Bavarian Nordic. However, Jyske Bank AS is 1.69 times less risky than Bavarian Nordic. It trades about 0.28 of its potential returns per unit of risk. Bavarian Nordic is currently generating about -0.23 per unit of risk. If you would invest 53,250 in Jyske Bank AS on November 29, 2024 and sell it today you would earn a total of 5,100 from holding Jyske Bank AS or generate 9.58% 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. Bavarian Nordic
Performance |
| Timeline |
| Jyske Bank AS |
| Bavarian Nordic |
Jyske Bank and Bavarian Nordic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jyske Bank and Bavarian Nordic
The main advantage of trading using opposite Jyske Bank and Bavarian Nordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jyske Bank position performs unexpectedly, Bavarian Nordic 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 Bavarian Nordic will offset losses from the drop in Bavarian Nordic's long position.| Jyske Bank vs. North Media AS | Jyske Bank vs. Strategic Investments AS | Jyske Bank vs. Embla Medical hf | Jyske Bank vs. PARKEN Sport Entertainment |
| Bavarian Nordic vs. Ambu AS | Bavarian Nordic vs. Danske Bank AS | Bavarian Nordic vs. Genmab AS | Bavarian Nordic vs. DSV Panalpina AS |
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.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |