Correlation Between Lollands Bank and Jyske Invest
Can any of the company-specific risk be diversified away by investing in both Lollands Bank 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 Lollands Bank and Jyske Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lollands Bank and Jyske Invest Korte, you can compare the effects of market volatilities on Lollands Bank 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 Lollands Bank with a short position of Jyske Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lollands Bank and Jyske Invest.
Diversification Opportunities for Lollands Bank and Jyske Invest
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lollands and Jyske is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Lollands Bank and Jyske Invest Korte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jyske Invest Korte 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 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 Korte has no effect on the direction of Lollands Bank i.e., Lollands Bank and Jyske Invest go up and down completely randomly.
Pair Corralation between Lollands Bank and Jyske Invest
Assuming the 90 days trading horizon Lollands Bank is expected to generate 8.71 times more return on investment than Jyske Invest. However, Lollands Bank is 8.71 times more volatile than Jyske Invest Korte. It trades about 0.06 of its potential returns per unit of risk. Jyske Invest Korte is currently generating about 0.03 per unit of risk. If you would invest 59,000 in Lollands Bank on October 25, 2024 and sell it today you would earn a total of 500.00 from holding Lollands Bank or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lollands Bank vs. Jyske Invest Korte
Performance |
| Timeline |
| Lollands Bank |
| Jyske Invest Korte |
Lollands Bank and Jyske Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lollands Bank and Jyske Invest
The main advantage of trading using opposite Lollands Bank and Jyske Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lollands Bank 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.| Lollands Bank vs. Skjern Bank AS | Lollands Bank vs. Kreditbanken AS | Lollands Bank vs. Djurslands Bank | Lollands Bank vs. Groenlandsbanken AS |
| Jyske Invest vs. Moens Bank AS | Jyske Invest vs. Embla Medical hf | Jyske Invest vs. Dataproces Group AS | Jyske Invest vs. Nordinvestments 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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