Correlation Between Nordfyns Bank and BankInv Kort
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By analyzing existing cross correlation between Nordfyns Bank AS and BankInv Kort HY, you can compare the effects of market volatilities on Nordfyns Bank and BankInv Kort 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 Nordfyns Bank with a short position of BankInv Kort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordfyns Bank and BankInv Kort.
Diversification Opportunities for Nordfyns Bank and BankInv Kort
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nordfyns and BankInv is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Nordfyns Bank AS and BankInv Kort HY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInv Kort HY and Nordfyns Bank 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 Nordfyns Bank AS are associated (or correlated) with BankInv Kort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInv Kort HY has no effect on the direction of Nordfyns Bank i.e., Nordfyns Bank and BankInv Kort go up and down completely randomly.
Pair Corralation between Nordfyns Bank and BankInv Kort
Assuming the 90 days trading horizon Nordfyns Bank AS is expected to generate 5.34 times more return on investment than BankInv Kort. However, Nordfyns Bank is 5.34 times more volatile than BankInv Kort HY. It trades about 0.07 of its potential returns per unit of risk. BankInv Kort HY is currently generating about 0.08 per unit of risk. If you would invest 22,700 in Nordfyns Bank AS on October 31, 2024 and sell it today you would earn a total of 11,500 from holding Nordfyns Bank AS or generate 50.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 39.88% |
| Values | Daily Returns |
Nordfyns Bank AS vs. BankInv Kort HY
Performance |
| Timeline |
| Nordfyns Bank AS |
| BankInv Kort HY |
Nordfyns Bank and BankInv Kort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordfyns Bank and BankInv Kort
The main advantage of trading using opposite Nordfyns Bank and BankInv Kort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordfyns Bank position performs unexpectedly, BankInv Kort 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 BankInv Kort will offset losses from the drop in BankInv Kort's long position.| Nordfyns Bank vs. Skjern Bank AS | Nordfyns Bank vs. Lollands Bank | Nordfyns Bank vs. Djurslands Bank | Nordfyns Bank vs. Moens Bank AS |
| BankInv Kort vs. Laan Spar Bank | BankInv Kort vs. Formuepleje Mix Medium | BankInv Kort vs. Skjern Bank AS | BankInv Kort vs. NTG Nordic Transport |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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