Correlation Between Nordea Invest and Nordfyns Bank
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By analyzing existing cross correlation between Nordea Invest Danske and Nordfyns Bank AS, you can compare the effects of market volatilities on Nordea Invest and Nordfyns 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 Nordfyns Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordea Invest and Nordfyns Bank.
Diversification Opportunities for Nordea Invest and Nordfyns Bank
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nordea and Nordfyns is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Nordea Invest Danske and Nordfyns Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordfyns 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 Nordfyns Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordfyns Bank AS has no effect on the direction of Nordea Invest i.e., Nordea Invest and Nordfyns Bank go up and down completely randomly.
Pair Corralation between Nordea Invest and Nordfyns Bank
Assuming the 90 days trading horizon Nordea Invest is expected to generate 17.3 times less return on investment than Nordfyns Bank. But when comparing it to its historical volatility, Nordea Invest Danske is 1.34 times less risky than Nordfyns Bank. It trades about 0.01 of its potential returns per unit of risk. Nordfyns Bank AS is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 21,800 in Nordfyns Bank AS on September 21, 2024 and sell it today you would earn a total of 12,200 from holding Nordfyns Bank AS or generate 55.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Nordea Invest Danske vs. Nordfyns Bank AS
Performance |
| Timeline |
| Nordea Invest Danske |
| Nordfyns Bank AS |
Nordea Invest and Nordfyns Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordea Invest and Nordfyns Bank
The main advantage of trading using opposite Nordea Invest and Nordfyns Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordea Invest position performs unexpectedly, Nordfyns 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 Nordfyns Bank will offset losses from the drop in Nordfyns Bank's long position.| Nordea Invest vs. Nordfyns Bank AS | Nordea Invest vs. Embla Medical hf | Nordea Invest vs. Scandinavian Medical Solutions | Nordea Invest vs. North Media AS |
| Nordfyns Bank vs. Skjern Bank AS | Nordfyns Bank vs. Lollands Bank | Nordfyns Bank vs. Djurslands Bank | Nordfyns Bank vs. Moens 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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