Correlation Between Maj Invest and DKIDKA
Can any of the company-specific risk be diversified away by investing in both Maj Invest and DKIDKA 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 DKIDKA 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 Danske Invest, you can compare the effects of market volatilities on Maj Invest and DKIDKA 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 DKIDKA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maj Invest and DKIDKA.
Diversification Opportunities for Maj Invest and DKIDKA
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Maj and DKIDKA is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Maj Invest Value and Investeringsforeningen Danske 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 DKIDKA. 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 DKIDKA go up and down completely randomly.
Pair Corralation between Maj Invest and DKIDKA
Assuming the 90 days trading horizon Maj Invest Value is expected to generate 0.97 times more return on investment than DKIDKA. However, Maj Invest Value is 1.03 times less risky than DKIDKA. It trades about 0.04 of its potential returns per unit of risk. Investeringsforeningen Danske Invest is currently generating about 0.01 per unit of risk. If you would invest 19,558 in Maj Invest Value on September 13, 2024 and sell it today you would earn a total of 112.00 from holding Maj Invest Value or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maj Invest Value vs. Investeringsforeningen Danske
Performance |
| Timeline |
| Maj Invest Value |
| Investeringsforeningen |
Maj Invest and DKIDKA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maj Invest and DKIDKA
The main advantage of trading using opposite Maj Invest and DKIDKA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maj Invest position performs unexpectedly, DKIDKA 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 DKIDKA will offset losses from the drop in DKIDKA's long position.| Maj Invest vs. Jyske Invest Nye | Maj Invest vs. Jyske Invest Korte | Maj Invest vs. Jyske Invest Nye | Maj Invest vs. Jyske Invest Virksomhedsobligationer |
| DKIDKA vs. Jyske Invest Nye | DKIDKA vs. Jyske Invest Korte | DKIDKA vs. Jyske Invest Nye | DKIDKA vs. Jyske Invest Virksomhedsobligationer |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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