Correlation Between Maj Invest and Nykredit Invest
Can any of the company-specific risk be diversified away by investing in both Maj Invest and Nykredit 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 Maj Invest and Nykredit Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maj Invest and Nykredit Invest Danske, you can compare the effects of market volatilities on Maj Invest and Nykredit 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 Maj Invest with a short position of Nykredit Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maj Invest and Nykredit Invest.
Diversification Opportunities for Maj Invest and Nykredit Invest
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Maj and Nykredit is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Maj Invest and Nykredit Invest Danske in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nykredit Invest Danske and Maj Invest 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 Maj Invest are associated (or correlated) with Nykredit Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nykredit Invest Danske has no effect on the direction of Maj Invest i.e., Maj Invest and Nykredit Invest go up and down completely randomly.
Pair Corralation between Maj Invest and Nykredit Invest
Assuming the 90 days trading horizon Maj Invest is expected to generate 0.16 times more return on investment than Nykredit Invest. However, Maj Invest is 6.17 times less risky than Nykredit Invest. It trades about 0.09 of its potential returns per unit of risk. Nykredit Invest Danske is currently generating about -0.15 per unit of risk. If you would invest 10,017 in Maj Invest on August 29, 2024 and sell it today you would earn a total of 36.00 from holding Maj Invest or generate 0.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maj Invest vs. Nykredit Invest Danske
Performance |
| Timeline |
| Maj Invest |
| Nykredit Invest Danske |
Maj Invest and Nykredit Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maj Invest and Nykredit Invest
The main advantage of trading using opposite Maj Invest and Nykredit Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maj Invest position performs unexpectedly, Nykredit 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 Nykredit Invest will offset losses from the drop in Nykredit Invest's long position.| Maj Invest vs. Jyske Invest Nye | Maj Invest vs. Jyske Invest Korte | Maj Invest vs. Jyske Invest Nye | Maj Invest vs. Jyske Invest Virksomhedsobligationer |
| Nykredit Invest vs. Formuepleje Mix Medium | Nykredit Invest vs. Dataproces Group AS | Nykredit Invest vs. Scandinavian Tobacco Group | Nykredit Invest vs. Scandinavian Medical Solutions |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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