Correlation Between Jyske Bank and Danske Invest
Can any of the company-specific risk be diversified away by investing in both Jyske Bank and Danske Invest 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 Danske Invest 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 Danske Invest Danmark, you can compare the effects of market volatilities on Jyske Bank and Danske Invest 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 Danske Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jyske Bank and Danske Invest.
Diversification Opportunities for Jyske Bank and Danske Invest
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jyske and Danske is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Jyske Bank AS and Danske Invest Danmark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Danske Invest Danmark 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 Danske Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Danske Invest Danmark has no effect on the direction of Jyske Bank i.e., Jyske Bank and Danske Invest go up and down completely randomly.
Pair Corralation between Jyske Bank and Danske Invest
Assuming the 90 days trading horizon Jyske Bank AS is expected to generate 1.48 times more return on investment than Danske Invest. However, Jyske Bank is 1.48 times more volatile than Danske Invest Danmark. It trades about 0.0 of its potential returns per unit of risk. Danske Invest Danmark is currently generating about 0.0 per unit of risk. If you would invest 50,746 in Jyske Bank AS on September 4, 2024 and sell it today you would lose (1,106) from holding Jyske Bank AS or give up 2.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jyske Bank AS vs. Danske Invest Danmark
Performance |
| Timeline |
| Jyske Bank AS |
| Danske Invest Danmark |
Jyske Bank and Danske Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jyske Bank and Danske Invest
The main advantage of trading using opposite Jyske Bank and Danske Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jyske Bank position performs unexpectedly, Danske Invest 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 Danske Invest will offset losses from the drop in Danske Invest's long position.| Jyske Bank vs. FLSmidth Co | Jyske Bank vs. Danske Bank AS | Jyske Bank vs. ISS AS | Jyske Bank vs. DSV Panalpina AS |
| Danske Invest vs. Lollands Bank | Danske Invest vs. Ringkjoebing Landbobank AS | Danske Invest vs. Kreditbanken AS | Danske Invest vs. BankInvest Value Globale |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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