Correlation Between LED IBond and Danish Aerospace
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By analyzing existing cross correlation between LED iBond International and Danish Aerospace, you can compare the effects of market volatilities on LED IBond and Danish Aerospace 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 LED IBond with a short position of Danish Aerospace. Check out your portfolio center. Please also check ongoing floating volatility patterns of LED IBond and Danish Aerospace.
Diversification Opportunities for LED IBond and Danish Aerospace
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between LED and Danish is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding LED iBond International and Danish Aerospace in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Danish Aerospace and LED IBond 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 LED iBond International are associated (or correlated) with Danish Aerospace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Danish Aerospace has no effect on the direction of LED IBond i.e., LED IBond and Danish Aerospace go up and down completely randomly.
Pair Corralation between LED IBond and Danish Aerospace
Assuming the 90 days trading horizon LED iBond International is expected to generate 2.0 times more return on investment than Danish Aerospace. However, LED IBond is 2.0 times more volatile than Danish Aerospace. It trades about 0.03 of its potential returns per unit of risk. Danish Aerospace is currently generating about 0.02 per unit of risk. If you would invest 65.00 in LED iBond International on September 14, 2024 and sell it today you would lose (20.00) from holding LED iBond International or give up 30.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
LED iBond International vs. Danish Aerospace
Performance |
| Timeline |
| LED iBond International |
| Danish Aerospace |
LED IBond and Danish Aerospace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LED IBond and Danish Aerospace
The main advantage of trading using opposite LED IBond and Danish Aerospace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LED IBond position performs unexpectedly, Danish Aerospace 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 Danish Aerospace will offset losses from the drop in Danish Aerospace's long position.| LED IBond vs. Scandinavian Tobacco Group | LED IBond vs. PARKEN Sport Entertainment | LED IBond vs. Prime Office AS | LED IBond vs. Vestjysk Bank AS |
| Danish Aerospace vs. BioPorto | Danish Aerospace vs. cBrain AS | Danish Aerospace vs. Orphazyme AS | Danish Aerospace vs. North Media 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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