Correlation Between Kreditbanken and Danske Invest
Can any of the company-specific risk be diversified away by investing in both Kreditbanken and Danske Invest 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 Kreditbanken and Danske Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kreditbanken AS and Danske Invest Danmark, you can compare the effects of market volatilities on Kreditbanken and Danske Invest 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 Kreditbanken with a short position of Danske Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kreditbanken and Danske Invest.
Diversification Opportunities for Kreditbanken and Danske Invest
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kreditbanken and Danske is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Kreditbanken AS and Danske Invest Danmark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Danske Invest Danmark and Kreditbanken 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 Kreditbanken AS are associated (or correlated) with Danske Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Danske Invest Danmark has no effect on the direction of Kreditbanken i.e., Kreditbanken and Danske Invest go up and down completely randomly.
Pair Corralation between Kreditbanken and Danske Invest
Assuming the 90 days trading horizon Kreditbanken AS is expected to generate 1.3 times more return on investment than Danske Invest. However, Kreditbanken is 1.3 times more volatile than Danske Invest Danmark. It trades about 0.05 of its potential returns per unit of risk. Danske Invest Danmark is currently generating about 0.0 per unit of risk. If you would invest 414,000 in Kreditbanken AS on September 4, 2024 and sell it today you would earn a total of 86,000 from holding Kreditbanken AS or generate 20.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Kreditbanken AS vs. Danske Invest Danmark
Performance |
| Timeline |
| Kreditbanken AS |
| Danske Invest Danmark |
Kreditbanken and Danske Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kreditbanken and Danske Invest
The main advantage of trading using opposite Kreditbanken and Danske Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kreditbanken position performs unexpectedly, Danske Invest 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 Danske Invest will offset losses from the drop in Danske Invest's long position.| Kreditbanken vs. FLSmidth Co | Kreditbanken vs. Danske Bank AS | Kreditbanken vs. ISS AS | Kreditbanken vs. DSV Panalpina AS |
| Danske Invest vs. Lollands Bank | Danske Invest vs. Ringkjoebing Landbobank AS | Danske Invest vs. Kreditbanken AS | Danske Invest vs. BankInvest Value Globale |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |