Correlation Between Jyske Bank and Groenlandsbanken
Can any of the company-specific risk be diversified away by investing in both Jyske Bank and Groenlandsbanken 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 Groenlandsbanken 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 Groenlandsbanken AS, you can compare the effects of market volatilities on Jyske Bank and Groenlandsbanken 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 Groenlandsbanken. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jyske Bank and Groenlandsbanken.
Diversification Opportunities for Jyske Bank and Groenlandsbanken
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jyske and Groenlandsbanken is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Jyske Bank AS and Groenlandsbanken AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groenlandsbanken 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 Groenlandsbanken. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groenlandsbanken has no effect on the direction of Jyske Bank i.e., Jyske Bank and Groenlandsbanken go up and down completely randomly.
Pair Corralation between Jyske Bank and Groenlandsbanken
Assuming the 90 days trading horizon Jyske Bank is expected to generate 3.1 times less return on investment than Groenlandsbanken. But when comparing it to its historical volatility, Jyske Bank AS is 1.16 times less risky than Groenlandsbanken. It trades about 0.13 of its potential returns per unit of risk. Groenlandsbanken AS is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 70,500 in Groenlandsbanken AS on October 19, 2024 and sell it today you would earn a total of 7,500 from holding Groenlandsbanken AS or generate 10.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jyske Bank AS vs. Groenlandsbanken AS
Performance |
| Timeline |
| Jyske Bank AS |
| Groenlandsbanken |
Jyske Bank and Groenlandsbanken Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jyske Bank and Groenlandsbanken
The main advantage of trading using opposite Jyske Bank and Groenlandsbanken positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jyske Bank position performs unexpectedly, Groenlandsbanken 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 Groenlandsbanken will offset losses from the drop in Groenlandsbanken's long position.| Jyske Bank vs. Laan Spar Bank | Jyske Bank vs. Carnegie Wealth Management | Jyske Bank vs. Skjern Bank AS | Jyske Bank vs. PARKEN Sport Entertainment |
| Groenlandsbanken vs. Skjern Bank AS | Groenlandsbanken vs. Lollands Bank | Groenlandsbanken vs. Ringkjoebing Landbobank AS | Groenlandsbanken vs. Kreditbanken 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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