Correlation Between Nordfyns Bank and Nordinvestments
Can any of the company-specific risk be diversified away by investing in both Nordfyns Bank and Nordinvestments 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 Nordinvestments 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 Nordinvestments AS, you can compare the effects of market volatilities on Nordfyns Bank and Nordinvestments 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 Nordinvestments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordfyns Bank and Nordinvestments.
Diversification Opportunities for Nordfyns Bank and Nordinvestments
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nordfyns and Nordinvestments is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nordfyns Bank AS and Nordinvestments AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordinvestments 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 Nordinvestments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordinvestments AS has no effect on the direction of Nordfyns Bank i.e., Nordfyns Bank and Nordinvestments go up and down completely randomly.
Pair Corralation between Nordfyns Bank and Nordinvestments
Assuming the 90 days trading horizon Nordfyns Bank AS is expected to generate 0.22 times more return on investment than Nordinvestments. However, Nordfyns Bank AS is 4.61 times less risky than Nordinvestments. It trades about 0.06 of its potential returns per unit of risk. Nordinvestments AS is currently generating about -0.01 per unit of risk. If you would invest 25,100 in Nordfyns Bank AS on November 7, 2024 and sell it today you would earn a total of 9,300 from holding Nordfyns Bank AS or generate 37.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordfyns Bank AS vs. Nordinvestments AS
Performance |
| Timeline |
| Nordfyns Bank AS |
| Nordinvestments AS |
Nordfyns Bank and Nordinvestments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordfyns Bank and Nordinvestments
The main advantage of trading using opposite Nordfyns Bank and Nordinvestments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordfyns Bank position performs unexpectedly, Nordinvestments 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 Nordinvestments will offset losses from the drop in Nordinvestments' long position.| Nordfyns Bank vs. Skjern Bank AS | Nordfyns Bank vs. Lollands Bank | Nordfyns Bank vs. Djurslands Bank | Nordfyns Bank vs. Moens Bank AS |
| Nordinvestments vs. Donkeyrepublic Holding AS | Nordinvestments vs. MapsPeople AS | Nordinvestments vs. Dataproces Group 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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