Correlation Between Nordea Bank and DKINMAKK
Specify exactly 2 symbols:
By analyzing existing cross correlation between Nordea Bank Abp and Investeringsforeningen Danske Invest, you can compare the effects of market volatilities on Nordea Bank and DKINMAKK 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 Nordea Bank with a short position of DKINMAKK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordea Bank and DKINMAKK.
Diversification Opportunities for Nordea Bank and DKINMAKK
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nordea and DKINMAKK is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Nordea Bank Abp and Investeringsforeningen Danske in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investeringsforeningen and Nordea 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 Nordea Bank Abp are associated (or correlated) with DKINMAKK. 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 Nordea Bank i.e., Nordea Bank and DKINMAKK go up and down completely randomly.
Pair Corralation between Nordea Bank and DKINMAKK
Assuming the 90 days trading horizon Nordea Bank Abp is expected to under-perform the DKINMAKK. In addition to that, Nordea Bank is 1.25 times more volatile than Investeringsforeningen Danske Invest. It trades about -0.08 of its total potential returns per unit of risk. Investeringsforeningen Danske Invest is currently generating about 0.01 per unit of volatility. If you would invest 36,783 in Investeringsforeningen Danske Invest on September 5, 2024 and sell it today you would earn a total of 67.00 from holding Investeringsforeningen Danske Invest or generate 0.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Nordea Bank Abp vs. Investeringsforeningen Danske
Performance |
| Timeline |
| Nordea Bank Abp |
| Investeringsforeningen |
Nordea Bank and DKINMAKK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordea Bank and DKINMAKK
The main advantage of trading using opposite Nordea Bank and DKINMAKK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordea Bank position performs unexpectedly, DKINMAKK 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 DKINMAKK will offset losses from the drop in DKINMAKK's long position.| Nordea Bank vs. Jyske Bank AS | Nordea Bank vs. Tryg AS | Nordea Bank vs. Danske Bank AS | Nordea Bank vs. ISS AS |
| DKINMAKK vs. Novo Nordisk AS | DKINMAKK vs. Nordea Bank Abp | DKINMAKK vs. DSV Panalpina AS | DKINMAKK vs. AP Mller |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |