Correlation Between Nordfyns Bank and Konsolidator
Can any of the company-specific risk be diversified away by investing in both Nordfyns Bank and Konsolidator at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Nordfyns Bank and Konsolidator into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordfyns Bank AS and Konsolidator AS, you can compare the effects of market volatilities on Nordfyns Bank and Konsolidator 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 Konsolidator. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordfyns Bank and Konsolidator.
Diversification Opportunities for Nordfyns Bank and Konsolidator
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nordfyns and Konsolidator is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Nordfyns Bank AS and Konsolidator AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konsolidator AS 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 Konsolidator. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konsolidator AS has no effect on the direction of Nordfyns Bank i.e., Nordfyns Bank and Konsolidator go up and down completely randomly.
Pair Corralation between Nordfyns Bank and Konsolidator
Assuming the 90 days trading horizon Nordfyns Bank AS is expected to generate 0.32 times more return on investment than Konsolidator. However, Nordfyns Bank AS is 3.14 times less risky than Konsolidator. It trades about 0.08 of its potential returns per unit of risk. Konsolidator AS is currently generating about 0.01 per unit of risk. If you would invest 26,600 in Nordfyns Bank AS on September 14, 2024 and sell it today you would earn a total of 7,200 from holding Nordfyns Bank AS or generate 27.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordfyns Bank AS vs. Konsolidator AS
Performance |
| Timeline |
| Nordfyns Bank AS |
| Konsolidator AS |
Nordfyns Bank and Konsolidator Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordfyns Bank and Konsolidator
The main advantage of trading using opposite Nordfyns Bank and Konsolidator positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordfyns Bank position performs unexpectedly, Konsolidator 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 Konsolidator will offset losses from the drop in Konsolidator'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 |
| Konsolidator vs. Fynske Bank AS | Konsolidator vs. BankIn Bredygt Klimaakt | Konsolidator vs. Nordfyns Bank AS | Konsolidator vs. TROPHY GAMES Development |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |