Correlation Between Nordea Invest and Hvidbjerg Bank
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By analyzing existing cross correlation between Nordea Invest Aktier and Hvidbjerg Bank, you can compare the effects of market volatilities on Nordea Invest and Hvidbjerg 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 Hvidbjerg Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordea Invest and Hvidbjerg Bank.
Diversification Opportunities for Nordea Invest and Hvidbjerg Bank
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nordea and Hvidbjerg is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Nordea Invest Aktier and Hvidbjerg Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hvidbjerg 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 Aktier are associated (or correlated) with Hvidbjerg Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hvidbjerg Bank has no effect on the direction of Nordea Invest i.e., Nordea Invest and Hvidbjerg Bank go up and down completely randomly.
Pair Corralation between Nordea Invest and Hvidbjerg Bank
Assuming the 90 days trading horizon Nordea Invest Aktier is expected to under-perform the Hvidbjerg Bank. But the stock apears to be less risky and, when comparing its historical volatility, Nordea Invest Aktier is 1.49 times less risky than Hvidbjerg Bank. The stock trades about -0.15 of its potential returns per unit of risk. The Hvidbjerg Bank is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 11,800 in Hvidbjerg Bank on September 24, 2024 and sell it today you would earn a total of 700.00 from holding Hvidbjerg Bank or generate 5.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 81.82% |
| Values | Daily Returns |
Nordea Invest Aktier vs. Hvidbjerg Bank
Performance |
| Timeline |
| Nordea Invest Aktier |
| Hvidbjerg Bank |
Nordea Invest and Hvidbjerg Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordea Invest and Hvidbjerg Bank
The main advantage of trading using opposite Nordea Invest and Hvidbjerg Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordea Invest position performs unexpectedly, Hvidbjerg 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 Hvidbjerg Bank will offset losses from the drop in Hvidbjerg Bank's long position.| Nordea Invest vs. Hvidbjerg Bank | Nordea Invest vs. Lollands Bank | Nordea Invest vs. Embla Medical hf | Nordea Invest vs. Alefarm Brewing AS |
| Hvidbjerg Bank vs. Skjern Bank AS | Hvidbjerg Bank vs. Lollands Bank | Hvidbjerg Bank vs. Djurslands Bank | Hvidbjerg Bank vs. Nordfyns 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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