Correlation Between Maj Invest and Skjern Bank
Can any of the company-specific risk be diversified away by investing in both Maj Invest and Skjern Bank 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 Skjern Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maj Invest and Skjern Bank AS, you can compare the effects of market volatilities on Maj Invest 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 Maj Invest with a short position of Skjern Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maj Invest and Skjern Bank.
Diversification Opportunities for Maj Invest and Skjern Bank
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Maj and Skjern is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Maj Invest 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 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 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 Maj Invest i.e., Maj Invest and Skjern Bank go up and down completely randomly.
Pair Corralation between Maj Invest and Skjern Bank
Assuming the 90 days trading horizon Maj Invest is expected to generate 0.14 times more return on investment than Skjern Bank. However, Maj Invest is 7.05 times less risky than Skjern Bank. It trades about 0.09 of its potential returns per unit of risk. Skjern Bank AS is currently generating about -0.3 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 | 95.65% |
| Values | Daily Returns |
Maj Invest vs. Skjern Bank AS
Performance |
| Timeline |
| Maj Invest |
| Skjern Bank AS |
Maj Invest and Skjern Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maj Invest and Skjern Bank
The main advantage of trading using opposite Maj Invest and Skjern Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maj Invest 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.| Maj Invest vs. Jyske Invest Nye | Maj Invest vs. Jyske Invest Korte | Maj Invest vs. Jyske Invest Nye | Maj Invest vs. Jyske Invest Virksomhedsobligationer |
| Skjern Bank vs. Sydbank AS | Skjern Bank vs. Jyske Bank AS | Skjern Bank vs. Alm Brand | Skjern Bank vs. Nordea Bank Abp |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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