Correlation Between Nedbank and Jyske Bank
Can any of the company-specific risk be diversified away by investing in both Nedbank and Jyske 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 Nedbank and Jyske Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nedbank Group and Jyske Bank AS, you can compare the effects of market volatilities on Nedbank and Jyske 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 Nedbank with a short position of Jyske Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nedbank and Jyske Bank.
Diversification Opportunities for Nedbank and Jyske Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nedbank and Jyske is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nedbank Group and Jyske Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jyske Bank AS and Nedbank 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 Nedbank Group are associated (or correlated) with Jyske Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jyske Bank AS has no effect on the direction of Nedbank i.e., Nedbank and Jyske Bank go up and down completely randomly.
Pair Corralation between Nedbank and Jyske Bank
If you would invest 1,429 in Jyske Bank AS on October 21, 2024 and sell it today you would earn a total of 0.00 from holding Jyske Bank AS or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nedbank Group vs. Jyske Bank AS
Performance |
| Timeline |
| Nedbank Group |
| Jyske Bank AS |
Nedbank and Jyske Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nedbank and Jyske Bank
The main advantage of trading using opposite Nedbank and Jyske Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nedbank position performs unexpectedly, Jyske 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 Jyske Bank will offset losses from the drop in Jyske Bank's long position.| Nedbank vs. Standard Bank Group | Nedbank vs. Absa Group Ltd | Nedbank vs. Bank Mandiri Persero | Nedbank vs. Kasikornbank Public Co |
| Jyske Bank vs. Baraboo Bancorporation | Jyske Bank vs. Schweizerische Nationalbank | Jyske Bank vs. Danske Bank AS | Jyske Bank vs. Absa Group Limited |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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