Correlation Between Maj Invest and Jyske Invest
Can any of the company-specific risk be diversified away by investing in both Maj Invest and Jyske Invest 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 Jyske Invest 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 Jyske Invest Hjt, you can compare the effects of market volatilities on Maj Invest and Jyske Invest 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 Jyske Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maj Invest and Jyske Invest.
Diversification Opportunities for Maj Invest and Jyske Invest
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Maj and Jyske is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Maj Invest Value and Jyske Invest Hjt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jyske Invest Hjt 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 Jyske Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jyske Invest Hjt has no effect on the direction of Maj Invest i.e., Maj Invest and Jyske Invest go up and down completely randomly.
Pair Corralation between Maj Invest and Jyske Invest
Assuming the 90 days trading horizon Maj Invest Value is expected to generate 6.67 times more return on investment than Jyske Invest. However, Maj Invest is 6.67 times more volatile than Jyske Invest Hjt. It trades about 0.19 of its potential returns per unit of risk. Jyske Invest Hjt is currently generating about 0.12 per unit of risk. If you would invest 18,906 in Maj Invest Value on August 28, 2024 and sell it today you would earn a total of 854.00 from holding Maj Invest Value or generate 4.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maj Invest Value vs. Jyske Invest Hjt
Performance |
| Timeline |
| Maj Invest Value |
| Jyske Invest Hjt |
Maj Invest and Jyske Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maj Invest and Jyske Invest
The main advantage of trading using opposite Maj Invest and Jyske Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maj Invest position performs unexpectedly, Jyske Invest 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 Jyske Invest will offset losses from the drop in Jyske Invest's long position.| Maj Invest vs. Maj Invest | Maj Invest vs. Maj Invest | Maj Invest vs. Sparinvest Lange | Maj Invest vs. Investeringsforeningen Danske Invest |
| Jyske Invest vs. Sydbank AS | Jyske Invest vs. Lollands Bank | Jyske Invest vs. BankIn Bredygt Klimaakt | Jyske Invest vs. Prime Office 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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