Correlation Between Jyske Bank and Tryg AS
Can any of the company-specific risk be diversified away by investing in both Jyske Bank and Tryg AS 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 Tryg AS 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 Tryg AS, you can compare the effects of market volatilities on Jyske Bank and Tryg AS 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 Tryg AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jyske Bank and Tryg AS.
Diversification Opportunities for Jyske Bank and Tryg AS
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jyske and Tryg is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Jyske Bank AS and Tryg AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tryg 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 Tryg AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tryg AS has no effect on the direction of Jyske Bank i.e., Jyske Bank and Tryg AS go up and down completely randomly.
Pair Corralation between Jyske Bank and Tryg AS
Assuming the 90 days trading horizon Jyske Bank AS is expected to generate 1.38 times more return on investment than Tryg AS. However, Jyske Bank is 1.38 times more volatile than Tryg AS. It trades about 0.15 of its potential returns per unit of risk. Tryg AS is currently generating about 0.04 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 | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Jyske Bank AS vs. Tryg AS
Performance |
| Timeline |
| Jyske Bank AS |
| Tryg AS |
Jyske Bank and Tryg AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jyske Bank and Tryg AS
The main advantage of trading using opposite Jyske Bank and Tryg AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jyske Bank position performs unexpectedly, Tryg AS 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 Tryg AS will offset losses from the drop in Tryg AS'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 |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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