Correlation Between Jyske Bank and MapsPeople
Can any of the company-specific risk be diversified away by investing in both Jyske Bank and MapsPeople 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 MapsPeople 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 MapsPeople AS, you can compare the effects of market volatilities on Jyske Bank and MapsPeople 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 MapsPeople. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jyske Bank and MapsPeople.
Diversification Opportunities for Jyske Bank and MapsPeople
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jyske and MapsPeople is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Jyske Bank AS and MapsPeople AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MapsPeople AS 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 MapsPeople. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MapsPeople AS has no effect on the direction of Jyske Bank i.e., Jyske Bank and MapsPeople go up and down completely randomly.
Pair Corralation between Jyske Bank and MapsPeople
Assuming the 90 days trading horizon Jyske Bank AS is expected to generate 0.12 times more return on investment than MapsPeople. However, Jyske Bank AS is 8.48 times less risky than MapsPeople. It trades about 0.15 of its potential returns per unit of risk. MapsPeople AS is currently generating about -0.06 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 Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Jyske Bank AS vs. MapsPeople AS
Performance |
| Timeline |
| Jyske Bank AS |
| MapsPeople AS |
Jyske Bank and MapsPeople Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jyske Bank and MapsPeople
The main advantage of trading using opposite Jyske Bank and MapsPeople positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jyske Bank position performs unexpectedly, MapsPeople 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 MapsPeople will offset losses from the drop in MapsPeople'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 |
| MapsPeople vs. Penneo AS | MapsPeople vs. FOM Technologies AS | MapsPeople vs. Shape Robotics AS | MapsPeople vs. Danske Invest |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |