Correlation Between Jyske Bank and Liberty Northwest
Can any of the company-specific risk be diversified away by investing in both Jyske Bank and Liberty Northwest 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 Liberty Northwest 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 Liberty Northwest Bancorp, you can compare the effects of market volatilities on Jyske Bank and Liberty Northwest 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 Liberty Northwest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jyske Bank and Liberty Northwest.
Diversification Opportunities for Jyske Bank and Liberty Northwest
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jyske and Liberty is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jyske Bank AS and Liberty Northwest Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Northwest Bancorp 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 Liberty Northwest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liberty Northwest Bancorp has no effect on the direction of Jyske Bank i.e., Jyske Bank and Liberty Northwest go up and down completely randomly.
Pair Corralation between Jyske Bank and Liberty Northwest
Assuming the 90 days horizon Jyske Bank AS is expected to generate 1.5 times more return on investment than Liberty Northwest. However, Jyske Bank is 1.5 times more volatile than Liberty Northwest Bancorp. It trades about 0.06 of its potential returns per unit of risk. Liberty Northwest Bancorp is currently generating about -0.04 per unit of risk. If you would invest 968.00 in Jyske Bank AS on September 1, 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 | 99.78% |
| Values | Daily Returns |
Jyske Bank AS vs. Liberty Northwest Bancorp
Performance |
| Timeline |
| Jyske Bank AS |
| Liberty Northwest Bancorp |
Jyske Bank and Liberty Northwest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jyske Bank and Liberty Northwest
The main advantage of trading using opposite Jyske Bank and Liberty Northwest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jyske Bank position performs unexpectedly, Liberty Northwest 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 Liberty Northwest will offset losses from the drop in Liberty Northwest'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 |
| Liberty Northwest vs. Chester Mining | Liberty Northwest vs. GAMCO Global Gold | Liberty Northwest vs. Getty Copper | Liberty Northwest vs. Black Hills |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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