Correlation Between Nordea Invest and Moens Bank
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By analyzing existing cross correlation between Nordea Invest Danske and Moens Bank AS, you can compare the effects of market volatilities on Nordea Invest and Moens 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 Moens Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordea Invest and Moens Bank.
Diversification Opportunities for Nordea Invest and Moens Bank
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nordea and Moens is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Nordea Invest Danske and Moens Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moens Bank AS 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 Danske are associated (or correlated) with Moens Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moens Bank AS has no effect on the direction of Nordea Invest i.e., Nordea Invest and Moens Bank go up and down completely randomly.
Pair Corralation between Nordea Invest and Moens Bank
Assuming the 90 days trading horizon Nordea Invest Danske is expected to under-perform the Moens Bank. But the stock apears to be less risky and, when comparing its historical volatility, Nordea Invest Danske is 1.92 times less risky than Moens Bank. The stock trades about -0.23 of its potential returns per unit of risk. The Moens Bank AS is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 22,600 in Moens Bank AS on November 3, 2024 and sell it today you would earn a total of 1,200 from holding Moens Bank AS or generate 5.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Nordea Invest Danske vs. Moens Bank AS
Performance |
| Timeline |
| Nordea Invest Danske |
| Moens Bank AS |
Nordea Invest and Moens Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordea Invest and Moens Bank
The main advantage of trading using opposite Nordea Invest and Moens Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordea Invest position performs unexpectedly, Moens 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 Moens Bank will offset losses from the drop in Moens Bank's long position.| Nordea Invest vs. Scandinavian Tobacco Group | Nordea Invest vs. Nordfyns Bank AS | Nordea Invest vs. Fynske Bank AS | Nordea Invest vs. TROPHY GAMES Development |
| Moens Bank vs. Skjern Bank AS | Moens Bank vs. Lollands Bank | Moens Bank vs. Nordfyns Bank AS | Moens Bank vs. Groenlandsbanken 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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