Correlation Between Moens Bank and Fynske Bank
Can any of the company-specific risk be diversified away by investing in both Moens Bank and Fynske 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 Moens Bank and Fynske Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moens Bank AS and Fynske Bank AS, you can compare the effects of market volatilities on Moens Bank and Fynske 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 Moens Bank with a short position of Fynske Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moens Bank and Fynske Bank.
Diversification Opportunities for Moens Bank and Fynske Bank
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Moens and Fynske is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Moens Bank AS and Fynske Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fynske Bank AS and Moens Bank 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 Moens Bank AS are associated (or correlated) with Fynske Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fynske Bank AS has no effect on the direction of Moens Bank i.e., Moens Bank and Fynske Bank go up and down completely randomly.
Pair Corralation between Moens Bank and Fynske Bank
Assuming the 90 days trading horizon Moens Bank AS is expected to under-perform the Fynske Bank. But the stock apears to be less risky and, when comparing its historical volatility, Moens Bank AS is 1.13 times less risky than Fynske Bank. The stock trades about -0.12 of its potential returns per unit of risk. The Fynske Bank AS is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 14,800 in Fynske Bank AS on August 25, 2024 and sell it today you would lose (500.00) from holding Fynske Bank AS or give up 3.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Moens Bank AS vs. Fynske Bank AS
Performance |
| Timeline |
| Moens Bank AS |
| Fynske Bank AS |
Moens Bank and Fynske Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moens Bank and Fynske Bank
The main advantage of trading using opposite Moens Bank and Fynske Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moens Bank position performs unexpectedly, Fynske 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 Fynske Bank will offset losses from the drop in Fynske Bank's long position.| Moens Bank vs. Dataproces Group AS | Moens Bank vs. cBrain AS | Moens Bank vs. ALK Abell AS | Moens Bank vs. ChemoMetec AS |
| Fynske Bank vs. Skjern Bank AS | Fynske Bank vs. Djurslands Bank | Fynske Bank vs. Sparekassen Sjaelland Fyn AS | Fynske 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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