Correlation Between Nordea Invest and Djurslands Bank
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By analyzing existing cross correlation between Nordea Invest Basis and Djurslands Bank, you can compare the effects of market volatilities on Nordea Invest and Djurslands 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 Nordea Invest with a short position of Djurslands Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordea Invest and Djurslands Bank.
Diversification Opportunities for Nordea Invest and Djurslands Bank
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nordea and Djurslands is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Nordea Invest Basis and Djurslands Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Djurslands Bank and Nordea 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 Nordea Invest Basis are associated (or correlated) with Djurslands Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Djurslands Bank has no effect on the direction of Nordea Invest i.e., Nordea Invest and Djurslands Bank go up and down completely randomly.
Pair Corralation between Nordea Invest and Djurslands Bank
Assuming the 90 days trading horizon Nordea Invest is expected to generate 3.69 times less return on investment than Djurslands Bank. But when comparing it to its historical volatility, Nordea Invest Basis is 2.02 times less risky than Djurslands Bank. It trades about 0.05 of its potential returns per unit of risk. Djurslands Bank is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 36,431 in Djurslands Bank on October 13, 2024 and sell it today you would earn a total of 22,569 from holding Djurslands Bank or generate 61.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.58% |
| Values | Daily Returns |
Nordea Invest Basis vs. Djurslands Bank
Performance |
| Timeline |
| Nordea Invest Basis |
| Djurslands Bank |
Nordea Invest and Djurslands Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordea Invest and Djurslands Bank
The main advantage of trading using opposite Nordea Invest and Djurslands Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordea Invest position performs unexpectedly, Djurslands 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 Djurslands Bank will offset losses from the drop in Djurslands Bank's long position.| Nordea Invest vs. Djurslands Bank | Nordea Invest vs. North Media AS | Nordea Invest vs. Sydbank AS | Nordea Invest vs. Nordinvestments AS |
| Djurslands Bank vs. Skjern Bank AS | Djurslands Bank vs. Lollands Bank | Djurslands Bank vs. Kreditbanken AS | Djurslands Bank vs. Fynske Bank 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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