Correlation Between Jyske Bank and Main Street
Can any of the company-specific risk be diversified away by investing in both Jyske Bank and Main Street 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 Main Street 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 Main Street Financial, you can compare the effects of market volatilities on Jyske Bank and Main Street 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 Main Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jyske Bank and Main Street.
Diversification Opportunities for Jyske Bank and Main Street
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jyske and Main is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jyske Bank AS and Main Street Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Main Street Financial 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 Main Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Main Street Financial has no effect on the direction of Jyske Bank i.e., Jyske Bank and Main Street go up and down completely randomly.
Pair Corralation between Jyske Bank and Main Street
Assuming the 90 days horizon Jyske Bank AS is expected to generate 0.05 times more return on investment than Main Street. However, Jyske Bank AS is 18.66 times less risky than Main Street. It trades about 0.07 of its potential returns per unit of risk. Main Street Financial is currently generating about -0.01 per unit of risk. If you would invest 1,406 in Jyske Bank AS on September 1, 2024 and sell it today you would earn a total of 23.00 from holding Jyske Bank AS or generate 1.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jyske Bank AS vs. Main Street Financial
Performance |
| Timeline |
| Jyske Bank AS |
| Main Street Financial |
Jyske Bank and Main Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jyske Bank and Main Street
The main advantage of trading using opposite Jyske Bank and Main Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jyske Bank position performs unexpectedly, Main Street 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 Main Street will offset losses from the drop in Main Street'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 |
| Main Street vs. CCFNB Bancorp | Main Street vs. Burke Herbert Financial | Main Street vs. First IC | Main Street vs. Enterprise Financial Services |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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