Correlation Between Maj Invest and Tryg AS
Can any of the company-specific risk be diversified away by investing in both Maj Invest and Tryg AS 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 Tryg AS 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 Tryg AS, you can compare the effects of market volatilities on Maj Invest and Tryg AS 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 Tryg AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maj Invest and Tryg AS.
Diversification Opportunities for Maj Invest and Tryg AS
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Maj and Tryg is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Maj Invest Pension and Tryg AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tryg 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 Tryg AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tryg AS has no effect on the direction of Maj Invest i.e., Maj Invest and Tryg AS go up and down completely randomly.
Pair Corralation between Maj Invest and Tryg AS
Assuming the 90 days trading horizon Maj Invest Pension is expected to generate 0.54 times more return on investment than Tryg AS. However, Maj Invest Pension is 1.86 times less risky than Tryg AS. It trades about 0.21 of its potential returns per unit of risk. Tryg AS is currently generating about -0.06 per unit of risk. If you would invest 12,550 in Maj Invest Pension on August 29, 2024 and sell it today you would earn a total of 273.00 from holding Maj Invest Pension or generate 2.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maj Invest Pension vs. Tryg AS
Performance |
| Timeline |
| Maj Invest Pension |
| Tryg AS |
Maj Invest and Tryg AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maj Invest and Tryg AS
The main advantage of trading using opposite Maj Invest and Tryg AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maj Invest position performs unexpectedly, Tryg AS 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 Tryg AS will offset losses from the drop in Tryg AS'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 |
| Tryg AS vs. Dataproces Group AS | Tryg AS vs. cBrain AS | Tryg AS vs. ALK Abell AS | Tryg AS vs. ChemoMetec 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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