Correlation Between Nordfyns Bank and Nordea Invest
Specify exactly 2 symbols:
By analyzing existing cross correlation between Nordfyns Bank AS and Nordea Invest Danske, you can compare the effects of market volatilities on Nordfyns Bank and Nordea 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 Nordea Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordfyns Bank and Nordea Invest.
Diversification Opportunities for Nordfyns Bank and Nordea Invest
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nordfyns and Nordea is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Nordfyns Bank AS and Nordea Invest Danske in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Danske 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 Nordea Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Invest Danske has no effect on the direction of Nordfyns Bank i.e., Nordfyns Bank and Nordea Invest go up and down completely randomly.
Pair Corralation between Nordfyns Bank and Nordea Invest
Assuming the 90 days trading horizon Nordfyns Bank AS is expected to generate 2.02 times more return on investment than Nordea Invest. However, Nordfyns Bank is 2.02 times more volatile than Nordea Invest Danske. It trades about 0.07 of its potential returns per unit of risk. Nordea Invest Danske is currently generating about 0.09 per unit of risk. If you would invest 33,000 in Nordfyns Bank AS on September 19, 2024 and sell it today you would earn a total of 600.00 from holding Nordfyns Bank AS or generate 1.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordfyns Bank AS vs. Nordea Invest Danske
Performance |
| Timeline |
| Nordfyns Bank AS |
| Nordea Invest Danske |
Nordfyns Bank and Nordea Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordfyns Bank and Nordea Invest
The main advantage of trading using opposite Nordfyns Bank and Nordea Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordfyns Bank position performs unexpectedly, Nordea 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 Nordea Invest will offset losses from the drop in Nordea Invest's long position.| Nordfyns Bank vs. FLSmidth Co | Nordfyns Bank vs. Danske Bank AS | Nordfyns Bank vs. ISS AS | Nordfyns Bank vs. DSV Panalpina AS |
| Nordea Invest vs. North Media AS | Nordea Invest vs. PARKEN Sport Entertainment | Nordea Invest vs. Nordfyns Bank AS | Nordea Invest 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |