Correlation Between Kreditbanken and Nordinvestments
Can any of the company-specific risk be diversified away by investing in both Kreditbanken and Nordinvestments 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 Nordinvestments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kreditbanken AS and Nordinvestments AS, you can compare the effects of market volatilities on Kreditbanken and Nordinvestments 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 Nordinvestments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kreditbanken and Nordinvestments.
Diversification Opportunities for Kreditbanken and Nordinvestments
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kreditbanken and Nordinvestments is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kreditbanken AS and Nordinvestments AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordinvestments AS 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 Nordinvestments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordinvestments AS has no effect on the direction of Kreditbanken i.e., Kreditbanken and Nordinvestments go up and down completely randomly.
Pair Corralation between Kreditbanken and Nordinvestments
If you would invest 123.00 in Nordinvestments AS on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Nordinvestments AS or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kreditbanken AS vs. Nordinvestments AS
Performance |
| Timeline |
| Kreditbanken AS |
| Nordinvestments AS |
Kreditbanken and Nordinvestments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kreditbanken and Nordinvestments
The main advantage of trading using opposite Kreditbanken and Nordinvestments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kreditbanken position performs unexpectedly, Nordinvestments 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 Nordinvestments will offset losses from the drop in Nordinvestments' long position.| Kreditbanken vs. Lollands Bank | Kreditbanken vs. Groenlandsbanken AS | Kreditbanken vs. Skjern Bank AS | Kreditbanken vs. Djurslands Bank |
| Nordinvestments vs. MapsPeople AS | Nordinvestments vs. Dataproces Group AS | Nordinvestments vs. Bavarian Nordic | Nordinvestments vs. Investeringsselskabet Luxor 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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