Correlation Between Movinn AS and Skjern Bank
Can any of the company-specific risk be diversified away by investing in both Movinn AS and Skjern 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 Movinn AS and Skjern Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Movinn AS and Skjern Bank AS, you can compare the effects of market volatilities on Movinn AS and Skjern 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 Movinn AS with a short position of Skjern Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Movinn AS and Skjern Bank.
Diversification Opportunities for Movinn AS and Skjern Bank
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Movinn and Skjern is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Movinn AS and Skjern Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skjern Bank AS and Movinn AS 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 Movinn AS are associated (or correlated) with Skjern Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skjern Bank AS has no effect on the direction of Movinn AS i.e., Movinn AS and Skjern Bank go up and down completely randomly.
Pair Corralation between Movinn AS and Skjern Bank
Assuming the 90 days trading horizon Movinn AS is expected to generate 2.2 times more return on investment than Skjern Bank. However, Movinn AS is 2.2 times more volatile than Skjern Bank AS. It trades about 0.02 of its potential returns per unit of risk. Skjern Bank AS is currently generating about -0.15 per unit of risk. If you would invest 374.00 in Movinn AS on September 3, 2024 and sell it today you would earn a total of 8.00 from holding Movinn AS or generate 2.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Movinn AS vs. Skjern Bank AS
Performance |
| Timeline |
| Movinn AS |
| Skjern Bank AS |
Movinn AS and Skjern Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Movinn AS and Skjern Bank
The main advantage of trading using opposite Movinn AS and Skjern Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Movinn AS position performs unexpectedly, Skjern 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 Skjern Bank will offset losses from the drop in Skjern Bank's long position.| Movinn AS vs. Skjern Bank AS | Movinn AS vs. Nordea Bank Abp | Movinn AS vs. Hvidbjerg Bank | Movinn AS vs. BankInvest Value Globale |
| Skjern Bank vs. Nordinvestments AS | Skjern Bank vs. BankInvest Value Globale | Skjern Bank vs. Dataproces Group AS | Skjern Bank vs. Sydbank 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 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.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |