Correlation Between Maj Invest and Alm Brand
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By analyzing existing cross correlation between Maj Invest Glob and Alm Brand, you can compare the effects of market volatilities on Maj Invest and Alm Brand 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 Alm Brand. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maj Invest and Alm Brand.
Diversification Opportunities for Maj Invest and Alm Brand
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Maj and Alm is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Maj Invest Glob and Alm Brand in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alm Brand 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 Glob are associated (or correlated) with Alm Brand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alm Brand has no effect on the direction of Maj Invest i.e., Maj Invest and Alm Brand go up and down completely randomly.
Pair Corralation between Maj Invest and Alm Brand
Assuming the 90 days trading horizon Maj Invest Glob is expected to generate 0.78 times more return on investment than Alm Brand. However, Maj Invest Glob is 1.28 times less risky than Alm Brand. It trades about 0.26 of its potential returns per unit of risk. Alm Brand is currently generating about 0.1 per unit of risk. If you would invest 13,410 in Maj Invest Glob on September 1, 2024 and sell it today you would earn a total of 763.00 from holding Maj Invest Glob or generate 5.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Maj Invest Glob vs. Alm Brand
Performance |
| Timeline |
| Maj Invest Glob |
| Alm Brand |
Maj Invest and Alm Brand Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maj Invest and Alm Brand
The main advantage of trading using opposite Maj Invest and Alm Brand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maj Invest position performs unexpectedly, Alm Brand 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 Alm Brand will offset losses from the drop in Alm Brand's long position.| Maj Invest vs. Novo Nordisk AS | Maj Invest vs. Nordea Bank Abp | Maj Invest vs. DSV Panalpina AS | Maj Invest vs. AP Mller |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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