Correlation Between Laan Spar and Jyske Invest
Can any of the company-specific risk be diversified away by investing in both Laan Spar and Jyske 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 Laan Spar and Jyske Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Laan Spar Bank and Jyske Invest Nye, you can compare the effects of market volatilities on Laan Spar and Jyske 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 Laan Spar with a short position of Jyske Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Laan Spar and Jyske Invest.
Diversification Opportunities for Laan Spar and Jyske Invest
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Laan and Jyske is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Laan Spar Bank and Jyske Invest Nye in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jyske Invest Nye 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 Jyske Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jyske Invest Nye has no effect on the direction of Laan Spar i.e., Laan Spar and Jyske Invest go up and down completely randomly.
Pair Corralation between Laan Spar and Jyske Invest
Assuming the 90 days trading horizon Laan Spar is expected to generate 2.97 times less return on investment than Jyske Invest. In addition to that, Laan Spar is 2.36 times more volatile than Jyske Invest Nye. It trades about 0.01 of its total potential returns per unit of risk. Jyske Invest Nye is currently generating about 0.08 per unit of volatility. If you would invest 8,734 in Jyske Invest Nye on August 31, 2024 and sell it today you would earn a total of 1,246 from holding Jyske Invest Nye or generate 14.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Laan Spar Bank vs. Jyske Invest Nye
Performance |
| Timeline |
| Laan Spar Bank |
| Jyske Invest Nye |
Laan Spar and Jyske Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Laan Spar and Jyske Invest
The main advantage of trading using opposite Laan Spar and Jyske Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Laan Spar position performs unexpectedly, Jyske 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 Jyske Invest will offset losses from the drop in Jyske Invest's long position.| Laan Spar vs. Sydbank AS | Laan Spar vs. Jyske Bank AS | Laan Spar vs. Alm Brand | Laan Spar vs. Nordea Bank Abp |
| Jyske Invest vs. Novo Nordisk AS | Jyske Invest vs. Nordea Bank Abp | Jyske Invest vs. DSV Panalpina AS | Jyske Invest vs. AP Mller |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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