Correlation Between Lollands Bank and BankInv GloAkColum
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By analyzing existing cross correlation between Lollands Bank and BankInv GloAkColum Threadndl, you can compare the effects of market volatilities on Lollands Bank and BankInv GloAkColum 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 Lollands Bank with a short position of BankInv GloAkColum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lollands Bank and BankInv GloAkColum.
Diversification Opportunities for Lollands Bank and BankInv GloAkColum
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lollands and BankInv is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Lollands Bank and BankInv GloAkColum Threadndl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInv GloAkColum and Lollands Bank 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 Lollands Bank are associated (or correlated) with BankInv GloAkColum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInv GloAkColum has no effect on the direction of Lollands Bank i.e., Lollands Bank and BankInv GloAkColum go up and down completely randomly.
Pair Corralation between Lollands Bank and BankInv GloAkColum
Assuming the 90 days trading horizon Lollands Bank is expected to generate 3.52 times less return on investment than BankInv GloAkColum. In addition to that, Lollands Bank is 1.73 times more volatile than BankInv GloAkColum Threadndl. It trades about 0.01 of its total potential returns per unit of risk. BankInv GloAkColum Threadndl is currently generating about 0.07 per unit of volatility. If you would invest 13,060 in BankInv GloAkColum Threadndl on August 25, 2024 and sell it today you would earn a total of 1,200 from holding BankInv GloAkColum Threadndl or generate 9.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 32.6% |
| Values | Daily Returns |
Lollands Bank vs. BankInv GloAkColum Threadndl
Performance |
| Timeline |
| Lollands Bank |
| BankInv GloAkColum |
Lollands Bank and BankInv GloAkColum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lollands Bank and BankInv GloAkColum
The main advantage of trading using opposite Lollands Bank and BankInv GloAkColum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lollands Bank position performs unexpectedly, BankInv GloAkColum 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 GloAkColum will offset losses from the drop in BankInv GloAkColum's long position.| Lollands Bank vs. Dataproces Group AS | Lollands Bank vs. cBrain AS | Lollands Bank vs. ALK Abell AS | Lollands Bank vs. ChemoMetec AS |
| BankInv GloAkColum vs. BankInvest Value Globale | BankInv GloAkColum vs. Jyske Bank AS | BankInv GloAkColum vs. Laan Spar Bank | BankInv GloAkColum vs. Kreditbanken 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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