Correlation Between Maj Invest and BAIGAI
Can any of the company-specific risk be diversified away by investing in both Maj Invest and BAIGAI 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 BAIGAI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maj Invest Value and Investeringsforeningen Bankinvest , you can compare the effects of market volatilities on Maj Invest and BAIGAI 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 BAIGAI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maj Invest and BAIGAI.
Diversification Opportunities for Maj Invest and BAIGAI
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Maj and BAIGAI is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Maj Invest Value and Investeringsforeningen Bankinv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investeringsforeningen 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 Value are associated (or correlated) with BAIGAI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investeringsforeningen has no effect on the direction of Maj Invest i.e., Maj Invest and BAIGAI go up and down completely randomly.
Pair Corralation between Maj Invest and BAIGAI
Assuming the 90 days trading horizon Maj Invest is expected to generate 1.54 times less return on investment than BAIGAI. In addition to that, Maj Invest is 1.08 times more volatile than Investeringsforeningen Bankinvest . It trades about 0.1 of its total potential returns per unit of risk. Investeringsforeningen Bankinvest is currently generating about 0.17 per unit of volatility. If you would invest 13,314 in Investeringsforeningen Bankinvest on August 29, 2024 and sell it today you would earn a total of 1,171 from holding Investeringsforeningen Bankinvest or generate 8.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maj Invest Value vs. Investeringsforeningen Bankinv
Performance |
| Timeline |
| Maj Invest Value |
| Investeringsforeningen |
Maj Invest and BAIGAI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maj Invest and BAIGAI
The main advantage of trading using opposite Maj Invest and BAIGAI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maj Invest position performs unexpectedly, BAIGAI 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 BAIGAI will offset losses from the drop in BAIGAI's long position.| Maj Invest vs. Maj Invest | Maj Invest vs. Maj Invest | Maj Invest vs. Sparinvest Lange | Maj Invest vs. Investeringsforeningen Danske Invest |
| BAIGAI vs. Sparinvest Lange | BAIGAI vs. Investeringsforeningen Danske Invest | BAIGAI vs. Sparinv SICAV | BAIGAI vs. Sparinvest Value Emerging |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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