Correlation Between LED IBond and Skjern Bank
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By analyzing existing cross correlation between LED iBond International and Skjern Bank AS, you can compare the effects of market volatilities on LED IBond and Skjern Bank 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 Skjern Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of LED IBond and Skjern Bank.
Diversification Opportunities for LED IBond and Skjern Bank
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between LED and Skjern is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding LED iBond International and Skjern Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skjern Bank AS 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 Skjern Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skjern Bank AS has no effect on the direction of LED IBond i.e., LED IBond and Skjern Bank go up and down completely randomly.
Pair Corralation between LED IBond and Skjern Bank
Assuming the 90 days trading horizon LED iBond International is expected to generate 26.67 times more return on investment than Skjern Bank. However, LED IBond is 26.67 times more volatile than Skjern Bank AS. It trades about 0.23 of its potential returns per unit of risk. Skjern Bank AS is currently generating about -0.37 per unit of risk. If you would invest 16.00 in LED iBond International on August 26, 2024 and sell it today you would earn a total of 16.00 from holding LED iBond International or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LED iBond International vs. Skjern Bank AS
Performance |
| Timeline |
| LED iBond International |
| Skjern Bank AS |
LED IBond and Skjern Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LED IBond and Skjern Bank
The main advantage of trading using opposite LED IBond and Skjern Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LED IBond position performs unexpectedly, Skjern Bank 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 Skjern Bank will offset losses from the drop in Skjern Bank's long position.| LED IBond vs. BankInvest Optima 30 | LED IBond vs. Gabriel Holding | LED IBond vs. Maj Invest Glob | LED IBond vs. Fundamental Invest Stock |
| Skjern Bank vs. Dataproces Group AS | Skjern Bank vs. cBrain AS | Skjern Bank vs. ALK Abell AS | Skjern Bank vs. ChemoMetec 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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