Correlation Between Jyske Bank and Nedbank
Can any of the company-specific risk be diversified away by investing in both Jyske Bank and Nedbank 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 Nedbank 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 Nedbank Group, you can compare the effects of market volatilities on Jyske Bank and Nedbank 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 Nedbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jyske Bank and Nedbank.
Diversification Opportunities for Jyske Bank and Nedbank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jyske and Nedbank is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jyske Bank AS and Nedbank Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nedbank Group 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 Nedbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nedbank Group has no effect on the direction of Jyske Bank i.e., Jyske Bank and Nedbank go up and down completely randomly.
Pair Corralation between Jyske Bank and Nedbank
Assuming the 90 days horizon Jyske Bank AS is expected to generate 0.76 times more return on investment than Nedbank. However, Jyske Bank AS is 1.32 times less risky than Nedbank. It trades about 0.06 of its potential returns per unit of risk. Nedbank Group is currently generating about 0.04 per unit of risk. If you would invest 968.00 in Jyske Bank AS on November 2, 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 | 99.8% |
| Values | Daily Returns |
Jyske Bank AS vs. Nedbank Group
Performance |
| Timeline |
| Jyske Bank AS |
| Nedbank Group |
Jyske Bank and Nedbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jyske Bank and Nedbank
The main advantage of trading using opposite Jyske Bank and Nedbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jyske Bank position performs unexpectedly, Nedbank 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 Nedbank will offset losses from the drop in Nedbank'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 |
| Nedbank vs. Standard Bank Group | Nedbank vs. Sanlam Ltd PK | Nedbank vs. Absa Group Ltd | Nedbank vs. Bank Mandiri Persero |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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