Correlation Between Nordfyns Bank and Maj Invest
Can any of the company-specific risk be diversified away by investing in both Nordfyns Bank and Maj Invest 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 Maj Invest 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 Maj Invest Pension, you can compare the effects of market volatilities on Nordfyns Bank and Maj Invest 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 Maj Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordfyns Bank and Maj Invest.
Diversification Opportunities for Nordfyns Bank and Maj Invest
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nordfyns and Maj is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Nordfyns Bank AS and Maj Invest Pension in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maj Invest Pension 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 Maj Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maj Invest Pension has no effect on the direction of Nordfyns Bank i.e., Nordfyns Bank and Maj Invest go up and down completely randomly.
Pair Corralation between Nordfyns Bank and Maj Invest
Assuming the 90 days trading horizon Nordfyns Bank AS is expected to generate 3.15 times more return on investment than Maj Invest. However, Nordfyns Bank is 3.15 times more volatile than Maj Invest Pension. It trades about 0.05 of its potential returns per unit of risk. Maj Invest Pension is currently generating about 0.1 per unit of risk. If you would invest 27,800 in Nordfyns Bank AS on September 3, 2024 and sell it today you would earn a total of 3,800 from holding Nordfyns Bank AS or generate 13.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordfyns Bank AS vs. Maj Invest Pension
Performance |
| Timeline |
| Nordfyns Bank AS |
| Maj Invest Pension |
Nordfyns Bank and Maj Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordfyns Bank and Maj Invest
The main advantage of trading using opposite Nordfyns Bank and Maj Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordfyns Bank position performs unexpectedly, Maj Invest 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 Maj Invest will offset losses from the drop in Maj Invest'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 |
| Maj Invest vs. North Media AS | Maj Invest vs. TROPHY GAMES Development | Maj Invest vs. Cessatech AS | Maj Invest vs. Spar Nord Bank |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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