Correlation Between Jyske Bank and AIB Group
Can any of the company-specific risk be diversified away by investing in both Jyske Bank and AIB Group 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 AIB Group 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 AIB Group PLC, you can compare the effects of market volatilities on Jyske Bank and AIB Group 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 AIB Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jyske Bank and AIB Group.
Diversification Opportunities for Jyske Bank and AIB Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jyske and AIB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jyske Bank AS and AIB Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIB Group PLC 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 AIB Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIB Group PLC has no effect on the direction of Jyske Bank i.e., Jyske Bank and AIB Group go up and down completely randomly.
Pair Corralation between Jyske Bank and AIB Group
Assuming the 90 days horizon Jyske Bank AS is expected to generate 0.63 times more return on investment than AIB Group. However, Jyske Bank AS is 1.58 times less risky than AIB Group. It trades about 0.06 of its potential returns per unit of risk. AIB Group PLC is currently generating about 0.02 per unit of risk. If you would invest 968.00 in Jyske Bank AS on October 21, 2024 and sell it today you would earn a total of 461.00 from holding Jyske Bank AS or generate 47.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 24.6% |
| Values | Daily Returns |
Jyske Bank AS vs. AIB Group PLC
Performance |
| Timeline |
| Jyske Bank AS |
| AIB Group PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jyske Bank and AIB Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jyske Bank and AIB Group
The main advantage of trading using opposite Jyske Bank and AIB Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jyske Bank position performs unexpectedly, AIB Group 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 AIB Group will offset losses from the drop in AIB Group's long position.| Jyske Bank vs. Baraboo Bancorporation | Jyske Bank vs. Schweizerische Nationalbank | Jyske Bank vs. Danske Bank AS | Jyske Bank vs. Absa Group Limited |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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