Correlation Between Jyske Bank and WindowMaster International
Can any of the company-specific risk be diversified away by investing in both Jyske Bank and WindowMaster International 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 WindowMaster International 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 WindowMaster International AS, you can compare the effects of market volatilities on Jyske Bank and WindowMaster International 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 WindowMaster International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jyske Bank and WindowMaster International.
Diversification Opportunities for Jyske Bank and WindowMaster International
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jyske and WindowMaster is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Jyske Bank AS and WindowMaster International AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WindowMaster International 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 WindowMaster International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WindowMaster International has no effect on the direction of Jyske Bank i.e., Jyske Bank and WindowMaster International go up and down completely randomly.
Pair Corralation between Jyske Bank and WindowMaster International
Assuming the 90 days trading horizon Jyske Bank AS is expected to generate 0.79 times more return on investment than WindowMaster International. However, Jyske Bank AS is 1.26 times less risky than WindowMaster International. It trades about 0.08 of its potential returns per unit of risk. WindowMaster International AS is currently generating about -0.3 per unit of risk. If you would invest 48,760 in Jyske Bank AS on September 4, 2024 and sell it today you would earn a total of 880.00 from holding Jyske Bank AS or generate 1.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jyske Bank AS vs. WindowMaster International AS
Performance |
| Timeline |
| Jyske Bank AS |
| WindowMaster International |
Jyske Bank and WindowMaster International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jyske Bank and WindowMaster International
The main advantage of trading using opposite Jyske Bank and WindowMaster International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jyske Bank position performs unexpectedly, WindowMaster International 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 WindowMaster International will offset losses from the drop in WindowMaster International's long position.| Jyske Bank vs. FLSmidth Co | Jyske Bank vs. Danske Bank AS | Jyske Bank vs. ISS AS | Jyske Bank vs. DSV Panalpina AS |
| WindowMaster International vs. FOM Technologies AS | WindowMaster International vs. LED iBond International | WindowMaster International vs. BioPorto | WindowMaster International vs. Dataproces Group 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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