Correlation Between Jyske Bank and Jyske Invest
Can any of the company-specific risk be diversified away by investing in both Jyske Bank and Jyske 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 Jyske 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 Jyske Invest Lange, you can compare the effects of market volatilities on Jyske Bank and Jyske 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 Jyske Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jyske Bank and Jyske Invest.
Diversification Opportunities for Jyske Bank and Jyske Invest
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jyske and Jyske is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Jyske Bank AS and Jyske Invest Lange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jyske Invest Lange 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 Jyske Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jyske Invest Lange has no effect on the direction of Jyske Bank i.e., Jyske Bank and Jyske Invest go up and down completely randomly.
Pair Corralation between Jyske Bank and Jyske Invest
Assuming the 90 days trading horizon Jyske Bank AS is expected to generate 8.23 times more return on investment than Jyske Invest. However, Jyske Bank is 8.23 times more volatile than Jyske Invest Lange. It trades about 0.12 of its potential returns per unit of risk. Jyske Invest Lange is currently generating about -0.16 per unit of risk. If you would invest 49,860 in Jyske Bank AS on October 7, 2024 and sell it today you would earn a total of 1,340 from holding Jyske Bank AS or generate 2.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jyske Bank AS vs. Jyske Invest Lange
Performance |
| Timeline |
| Jyske Bank AS |
| Jyske Invest Lange |
Jyske Bank and Jyske Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jyske Bank and Jyske Invest
The main advantage of trading using opposite Jyske Bank and Jyske Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jyske Bank position performs unexpectedly, Jyske 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 Jyske Invest will offset losses from the drop in Jyske Invest's long position.The idea behind Jyske Bank AS and Jyske Invest Lange pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Jyske Invest vs. PARKEN Sport Entertainment | Jyske Invest vs. Scandinavian Investment Group | Jyske Invest vs. Vestjysk Bank AS | Jyske Invest vs. Hvidbjerg Bank |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |