Correlation Between Laan Spar and BankInv Kort
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By analyzing existing cross correlation between Laan Spar Bank and BankInv Kort HY, you can compare the effects of market volatilities on Laan Spar and BankInv Kort 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 Laan Spar with a short position of BankInv Kort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Laan Spar and BankInv Kort.
Diversification Opportunities for Laan Spar and BankInv Kort
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Laan and BankInv is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Laan Spar Bank and BankInv Kort HY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInv Kort HY and Laan Spar 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 Laan Spar Bank are associated (or correlated) with BankInv Kort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInv Kort HY has no effect on the direction of Laan Spar i.e., Laan Spar and BankInv Kort go up and down completely randomly.
Pair Corralation between Laan Spar and BankInv Kort
Assuming the 90 days trading horizon Laan Spar Bank is expected to under-perform the BankInv Kort. In addition to that, Laan Spar is 6.53 times more volatile than BankInv Kort HY. It trades about 0.0 of its total potential returns per unit of risk. BankInv Kort HY is currently generating about 0.07 per unit of volatility. If you would invest 10,230 in BankInv Kort HY on October 18, 2024 and sell it today you would earn a total of 170.00 from holding BankInv Kort HY or generate 1.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.77% |
| Values | Daily Returns |
Laan Spar Bank vs. BankInv Kort HY
Performance |
| Timeline |
| Laan Spar Bank |
| BankInv Kort HY |
Laan Spar and BankInv Kort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Laan Spar and BankInv Kort
The main advantage of trading using opposite Laan Spar and BankInv Kort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Laan Spar position performs unexpectedly, BankInv Kort 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 BankInv Kort will offset losses from the drop in BankInv Kort's long position.| Laan Spar vs. Vestjysk Bank AS | Laan Spar vs. Skjern Bank AS | Laan Spar vs. Groenlandsbanken AS | Laan Spar vs. Kreditbanken AS |
| BankInv Kort vs. Cessatech AS | BankInv Kort vs. Danske Andelskassers Bank | BankInv Kort vs. Hvidbjerg Bank | BankInv Kort vs. BankIn Bredygt Klimaakt |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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