Correlation Between Konsolidator and Fynske Bank
Can any of the company-specific risk be diversified away by investing in both Konsolidator and Fynske Bank 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 Konsolidator and Fynske Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Konsolidator AS and Fynske Bank AS, you can compare the effects of market volatilities on Konsolidator and Fynske Bank 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 Konsolidator with a short position of Fynske Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konsolidator and Fynske Bank.
Diversification Opportunities for Konsolidator and Fynske Bank
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Konsolidator and Fynske is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Konsolidator AS and Fynske Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fynske Bank AS and Konsolidator 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 Konsolidator AS are associated (or correlated) with Fynske Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fynske Bank AS has no effect on the direction of Konsolidator i.e., Konsolidator and Fynske Bank go up and down completely randomly.
Pair Corralation between Konsolidator and Fynske Bank
Assuming the 90 days trading horizon Konsolidator AS is expected to generate 2.47 times more return on investment than Fynske Bank. However, Konsolidator is 2.47 times more volatile than Fynske Bank AS. It trades about 0.01 of its potential returns per unit of risk. Fynske Bank AS is currently generating about 0.02 per unit of risk. If you would invest 420.00 in Konsolidator AS on September 14, 2024 and sell it today you would lose (40.00) from holding Konsolidator AS or give up 9.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Konsolidator AS vs. Fynske Bank AS
Performance |
| Timeline |
| Konsolidator AS |
| Fynske Bank AS |
Konsolidator and Fynske Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konsolidator and Fynske Bank
The main advantage of trading using opposite Konsolidator and Fynske Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konsolidator position performs unexpectedly, Fynske Bank 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 Fynske Bank will offset losses from the drop in Fynske Bank's long position.| Konsolidator vs. Fynske Bank AS | Konsolidator vs. BankIn Bredygt Klimaakt | Konsolidator vs. Nordfyns Bank AS | Konsolidator vs. TROPHY GAMES Development |
| Fynske Bank vs. FLSmidth Co | Fynske Bank vs. Danske Bank AS | Fynske Bank vs. ISS AS | Fynske Bank vs. DSV Panalpina 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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