Correlation Between Lollands Bank and Wealth Inv
Can any of the company-specific risk be diversified away by investing in both Lollands Bank and Wealth Inv 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 Wealth Inv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lollands Bank and Wealth Inv Optimal, you can compare the effects of market volatilities on Lollands Bank and Wealth Inv 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 Wealth Inv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lollands Bank and Wealth Inv.
Diversification Opportunities for Lollands Bank and Wealth Inv
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lollands and Wealth is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Lollands Bank and Wealth Inv Optimal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wealth Inv Optimal 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 Wealth Inv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wealth Inv Optimal has no effect on the direction of Lollands Bank i.e., Lollands Bank and Wealth Inv go up and down completely randomly.
Pair Corralation between Lollands Bank and Wealth Inv
Assuming the 90 days trading horizon Lollands Bank is expected to generate 2.85 times less return on investment than Wealth Inv. In addition to that, Lollands Bank is 2.28 times more volatile than Wealth Inv Optimal. It trades about 0.02 of its total potential returns per unit of risk. Wealth Inv Optimal is currently generating about 0.13 per unit of volatility. If you would invest 14,000 in Wealth Inv Optimal on September 14, 2024 and sell it today you would earn a total of 3,355 from holding Wealth Inv Optimal or generate 23.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.45% |
| Values | Daily Returns |
Lollands Bank vs. Wealth Inv Optimal
Performance |
| Timeline |
| Lollands Bank |
| Wealth Inv Optimal |
Lollands Bank and Wealth Inv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lollands Bank and Wealth Inv
The main advantage of trading using opposite Lollands Bank and Wealth Inv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lollands Bank position performs unexpectedly, Wealth Inv 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 Wealth Inv will offset losses from the drop in Wealth Inv's long position.| Lollands Bank vs. Skjern Bank AS | Lollands Bank vs. Kreditbanken AS | Lollands Bank vs. Djurslands Bank | Lollands Bank vs. Groenlandsbanken AS |
| Wealth Inv vs. Prime Office AS | Wealth Inv vs. Lollands Bank | Wealth Inv vs. Skjern Bank AS | Wealth Inv 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Stocks Directory Find actively traded stocks across global markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |