Correlation Between Maj Invest and LED IBond
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By analyzing existing cross correlation between Maj Invest Glob and LED iBond International, you can compare the effects of market volatilities on Maj Invest and LED IBond 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 LED IBond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maj Invest and LED IBond.
Diversification Opportunities for Maj Invest and LED IBond
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Maj and LED is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Maj Invest Glob and LED iBond International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LED iBond International 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 LED IBond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LED iBond International has no effect on the direction of Maj Invest i.e., Maj Invest and LED IBond go up and down completely randomly.
Pair Corralation between Maj Invest and LED IBond
Assuming the 90 days trading horizon Maj Invest is expected to generate 9.06 times less return on investment than LED IBond. But when comparing it to its historical volatility, Maj Invest Glob is 10.86 times less risky than LED IBond. It trades about 0.04 of its potential returns per unit of risk. LED iBond International is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 36.00 in LED iBond International on November 3, 2024 and sell it today you would lose (15.00) from holding LED iBond International or give up 41.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 88.96% |
| Values | Daily Returns |
Maj Invest Glob vs. LED iBond International
Performance |
| Timeline |
| Maj Invest Glob |
| LED iBond International |
Maj Invest and LED IBond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maj Invest and LED IBond
The main advantage of trading using opposite Maj Invest and LED IBond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maj Invest position performs unexpectedly, LED IBond 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 LED IBond will offset losses from the drop in LED IBond's long position.| Maj Invest vs. BankInvest Value Globale | Maj Invest vs. Nordea Bank Abp | Maj Invest vs. Jyske Bank AS | Maj Invest vs. Djurslands Bank |
| LED IBond vs. Embla Medical hf | LED IBond vs. Nordea Bank Abp | LED IBond vs. Sydbank AS | LED IBond vs. Formuepleje Mix Medium |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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