Correlation Between Jyske Bank and Embla Medical
Can any of the company-specific risk be diversified away by investing in both Jyske Bank and Embla Medical 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 Embla Medical 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 Embla Medical hf, you can compare the effects of market volatilities on Jyske Bank and Embla Medical 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 Embla Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jyske Bank and Embla Medical.
Diversification Opportunities for Jyske Bank and Embla Medical
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jyske and Embla is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Jyske Bank AS and Embla Medical hf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Embla Medical hf 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 Embla Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Embla Medical hf has no effect on the direction of Jyske Bank i.e., Jyske Bank and Embla Medical go up and down completely randomly.
Pair Corralation between Jyske Bank and Embla Medical
Assuming the 90 days trading horizon Jyske Bank AS is expected to generate 0.91 times more return on investment than Embla Medical. However, Jyske Bank AS is 1.09 times less risky than Embla Medical. It trades about 0.15 of its potential returns per unit of risk. Embla Medical hf is currently generating about 0.07 per unit of risk. If you would invest 47,820 in Jyske Bank AS on September 1, 2024 and sell it today you would earn a total of 1,860 from holding Jyske Bank AS or generate 3.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jyske Bank AS vs. Embla Medical hf
Performance |
| Timeline |
| Jyske Bank AS |
| Embla Medical hf |
Jyske Bank and Embla Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jyske Bank and Embla Medical
The main advantage of trading using opposite Jyske Bank and Embla Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jyske Bank position performs unexpectedly, Embla Medical 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 Embla Medical will offset losses from the drop in Embla Medical's long position.| Jyske Bank vs. Lollands Bank | Jyske Bank vs. Strategic Investments AS | Jyske Bank vs. BankIn Bredygt Klimaakt | Jyske Bank vs. Danske Andelskassers Bank |
| Embla Medical vs. Novo Nordisk AS | Embla Medical vs. Nordea Bank Abp | Embla Medical vs. DSV Panalpina AS | Embla Medical 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |