Correlation Between Kreditbanken and Stenocare
Can any of the company-specific risk be diversified away by investing in both Kreditbanken and Stenocare 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 Stenocare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kreditbanken AS and Stenocare AS, you can compare the effects of market volatilities on Kreditbanken and Stenocare 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 Stenocare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kreditbanken and Stenocare.
Diversification Opportunities for Kreditbanken and Stenocare
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kreditbanken and Stenocare is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Kreditbanken AS and Stenocare AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stenocare 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 Stenocare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stenocare AS has no effect on the direction of Kreditbanken i.e., Kreditbanken and Stenocare go up and down completely randomly.
Pair Corralation between Kreditbanken and Stenocare
Assuming the 90 days trading horizon Kreditbanken AS is expected to generate 0.19 times more return on investment than Stenocare. However, Kreditbanken AS is 5.17 times less risky than Stenocare. It trades about 0.06 of its potential returns per unit of risk. Stenocare AS is currently generating about -0.05 per unit of risk. If you would invest 426,783 in Kreditbanken AS on November 27, 2024 and sell it today you would earn a total of 183,217 from holding Kreditbanken AS or generate 42.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kreditbanken AS vs. Stenocare AS
Performance |
| Timeline |
| Kreditbanken AS |
| Stenocare AS |
Kreditbanken and Stenocare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kreditbanken and Stenocare
The main advantage of trading using opposite Kreditbanken and Stenocare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kreditbanken position performs unexpectedly, Stenocare 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 Stenocare will offset losses from the drop in Stenocare's long position.| Kreditbanken vs. Lollands Bank | Kreditbanken vs. Groenlandsbanken AS | Kreditbanken vs. Skjern Bank AS | Kreditbanken vs. Djurslands Bank |
| Stenocare vs. Embla Medical hf | Stenocare vs. Fynske Bank AS | Stenocare vs. Jyske Bank AS | Stenocare vs. Scandinavian Medical Solutions |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |