Correlation Between Maj Invest and BankInvest Basis
Can any of the company-specific risk be diversified away by investing in both Maj Invest and BankInvest Basis 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 BankInvest Basis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maj Invest Kontra and BankInvest Basis, you can compare the effects of market volatilities on Maj Invest and BankInvest Basis 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 BankInvest Basis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maj Invest and BankInvest Basis.
Diversification Opportunities for Maj Invest and BankInvest Basis
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Maj and BankInvest is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Maj Invest Kontra and BankInvest Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInvest Basis 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 Kontra are associated (or correlated) with BankInvest Basis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInvest Basis has no effect on the direction of Maj Invest i.e., Maj Invest and BankInvest Basis go up and down completely randomly.
Pair Corralation between Maj Invest and BankInvest Basis
If you would invest (100.00) in BankInvest Basis on September 2, 2024 and sell it today you would earn a total of 100.00 from holding BankInvest Basis or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maj Invest Kontra vs. BankInvest Basis
Performance |
| Timeline |
| Maj Invest Kontra |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| BankInvest Basis |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Maj Invest and BankInvest Basis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maj Invest and BankInvest Basis
The main advantage of trading using opposite Maj Invest and BankInvest Basis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maj Invest position performs unexpectedly, BankInvest Basis 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 BankInvest Basis will offset losses from the drop in BankInvest Basis' long position.| Maj Invest vs. Sparinvest Lange | Maj Invest vs. Investeringsforeningen Danske Invest | Maj Invest vs. Sparinv SICAV |
| BankInvest Basis vs. Sparinvest Lange | BankInvest Basis vs. Investeringsforeningen Danske Invest | BankInvest Basis vs. Sparinv SICAV |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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