Correlation Between Maj Invest and Investin Optimal
Can any of the company-specific risk be diversified away by investing in both Maj Invest and Investin Optimal 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 Investin Optimal 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 Investin Optimal Stabil, you can compare the effects of market volatilities on Maj Invest and Investin Optimal 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 Investin Optimal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maj Invest and Investin Optimal.
Diversification Opportunities for Maj Invest and Investin Optimal
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Maj and Investin is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Maj Invest Pension and Investin Optimal Stabil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investin Optimal Stabil 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 Investin Optimal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investin Optimal Stabil has no effect on the direction of Maj Invest i.e., Maj Invest and Investin Optimal go up and down completely randomly.
Pair Corralation between Maj Invest and Investin Optimal
Assuming the 90 days trading horizon Maj Invest Pension is expected to under-perform the Investin Optimal. In addition to that, Maj Invest is 1.34 times more volatile than Investin Optimal Stabil. It trades about -0.27 of its total potential returns per unit of risk. Investin Optimal Stabil is currently generating about -0.23 per unit of volatility. If you would invest 14,986 in Investin Optimal Stabil on December 7, 2024 and sell it today you would lose (313.00) from holding Investin Optimal Stabil or give up 2.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maj Invest Pension vs. Investin Optimal Stabil
Performance |
| Timeline |
| Maj Invest Pension |
| Investin Optimal Stabil |
Maj Invest and Investin Optimal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maj Invest and Investin Optimal
The main advantage of trading using opposite Maj Invest and Investin Optimal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maj Invest position performs unexpectedly, Investin Optimal 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 Investin Optimal will offset losses from the drop in Investin Optimal's long position.| Maj Invest vs. Skjern Bank AS | Maj Invest vs. Nordinvestments AS | Maj Invest vs. Dataproces Group AS | Maj Invest vs. Strategic Investments AS |
| Investin Optimal vs. Prime Office AS | Investin Optimal vs. Djurslands Bank | Investin Optimal vs. FOM Technologies AS | Investin Optimal vs. Jyske Bank 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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