Correlation Between Maj Invest and Moens Bank
Can any of the company-specific risk be diversified away by investing in both Maj Invest and Moens Bank 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 Moens Bank 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 Moens Bank AS, you can compare the effects of market volatilities on Maj Invest and Moens Bank 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 Moens Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maj Invest and Moens Bank.
Diversification Opportunities for Maj Invest and Moens Bank
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Maj and Moens is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Maj Invest Pension and Moens Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moens Bank AS 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 Moens Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moens Bank AS has no effect on the direction of Maj Invest i.e., Maj Invest and Moens Bank go up and down completely randomly.
Pair Corralation between Maj Invest and Moens Bank
Assuming the 90 days trading horizon Maj Invest Pension is expected to generate 0.38 times more return on investment than Moens Bank. However, Maj Invest Pension is 2.61 times less risky than Moens Bank. It trades about 0.23 of its potential returns per unit of risk. Moens Bank AS is currently generating about -0.16 per unit of risk. If you would invest 12,550 in Maj Invest Pension on August 28, 2024 and sell it today you would earn a total of 294.00 from holding Maj Invest Pension or generate 2.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maj Invest Pension vs. Moens Bank AS
Performance |
| Timeline |
| Maj Invest Pension |
| Moens Bank AS |
Maj Invest and Moens Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maj Invest and Moens Bank
The main advantage of trading using opposite Maj Invest and Moens Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maj Invest position performs unexpectedly, Moens Bank 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 Moens Bank will offset losses from the drop in Moens Bank'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 |
| Moens Bank vs. Skjern Bank AS | Moens Bank vs. Lollands Bank | Moens Bank vs. Nordfyns Bank AS | Moens Bank vs. Groenlandsbanken 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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