Correlation Between Maj Invest and Danske Invest
Can any of the company-specific risk be diversified away by investing in both Maj Invest and Danske 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 Danske Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maj Invest Pension and Danske Invest Danmark, you can compare the effects of market volatilities on Maj Invest and Danske 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 Danske Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maj Invest and Danske Invest.
Diversification Opportunities for Maj Invest and Danske Invest
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Maj and Danske is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Maj Invest Pension and Danske Invest Danmark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Danske Invest Danmark 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 Pension are associated (or correlated) with Danske Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Danske Invest Danmark has no effect on the direction of Maj Invest i.e., Maj Invest and Danske Invest go up and down completely randomly.
Pair Corralation between Maj Invest and Danske Invest
Assuming the 90 days trading horizon Maj Invest Pension is expected to generate 0.48 times more return on investment than Danske Invest. However, Maj Invest Pension is 2.06 times less risky than Danske Invest. It trades about 0.35 of its potential returns per unit of risk. Danske Invest Danmark is currently generating about -0.11 per unit of risk. If you would invest 12,424 in Maj Invest Pension on September 3, 2024 and sell it today you would earn a total of 410.00 from holding Maj Invest Pension or generate 3.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maj Invest Pension vs. Danske Invest Danmark
Performance |
| Timeline |
| Maj Invest Pension |
| Danske Invest Danmark |
Maj Invest and Danske Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maj Invest and Danske Invest
The main advantage of trading using opposite Maj Invest and Danske Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maj Invest position performs unexpectedly, Danske 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 Danske Invest will offset losses from the drop in Danske Invest's long position.| Maj Invest vs. North Media AS | Maj Invest vs. TROPHY GAMES Development | Maj Invest vs. Cessatech AS | Maj Invest vs. Spar Nord Bank |
| Danske Invest vs. Groenlandsbanken AS | Danske Invest vs. Prime Office AS | Danske Invest vs. Jyske Bank AS | Danske Invest vs. Kreditbanken AS |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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