Correlation Between Kreditbanken and Danske Invest
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By analyzing existing cross correlation between Kreditbanken AS and Danske Invest Euro, 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
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kreditbanken and Danske is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Kreditbanken AS and Danske Invest Euro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Danske Invest Euro 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 Euro 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 7.29 times more return on investment than Danske Invest. However, Kreditbanken is 7.29 times more volatile than Danske Invest Euro. It trades about 0.07 of its potential returns per unit of risk. Danske Invest Euro is currently generating about 0.13 per unit of risk. If you would invest 410,000 in Kreditbanken AS on November 27, 2024 and sell it today you would earn a total of 200,000 from holding Kreditbanken AS or generate 48.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Kreditbanken AS vs. Danske Invest Euro
Performance |
| Timeline |
| Kreditbanken AS |
| Danske Invest Euro |
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. Lollands Bank | Kreditbanken vs. Groenlandsbanken AS | Kreditbanken vs. Skjern Bank AS | Kreditbanken vs. Djurslands Bank |
| Danske Invest vs. Sydbank AS | Danske Invest vs. Hvidbjerg Bank | Danske Invest vs. Groenlandsbanken AS | Danske Invest vs. Moens Bank 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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