Correlation Between Jyske Bank and Dantax
Can any of the company-specific risk be diversified away by investing in both Jyske Bank and Dantax 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 Dantax 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 Dantax, you can compare the effects of market volatilities on Jyske Bank and Dantax 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 Dantax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jyske Bank and Dantax.
Diversification Opportunities for Jyske Bank and Dantax
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jyske and Dantax is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Jyske Bank AS and Dantax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dantax 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 Dantax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dantax has no effect on the direction of Jyske Bank i.e., Jyske Bank and Dantax go up and down completely randomly.
Pair Corralation between Jyske Bank and Dantax
Assuming the 90 days trading horizon Jyske Bank AS is expected to generate 0.99 times more return on investment than Dantax. However, Jyske Bank AS is 1.01 times less risky than Dantax. It trades about -0.17 of its potential returns per unit of risk. Dantax is currently generating about -0.26 per unit of risk. If you would invest 53,550 in Jyske Bank AS on August 29, 2024 and sell it today you would lose (5,050) from holding Jyske Bank AS or give up 9.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jyske Bank AS vs. Dantax
Performance |
| Timeline |
| Jyske Bank AS |
| Dantax |
Jyske Bank and Dantax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jyske Bank and Dantax
The main advantage of trading using opposite Jyske Bank and Dantax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jyske Bank position performs unexpectedly, Dantax 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 Dantax will offset losses from the drop in Dantax's long position.| Jyske Bank vs. Dataproces Group AS | Jyske Bank vs. cBrain AS | Jyske Bank vs. ALK Abell AS | Jyske Bank vs. ChemoMetec 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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