Correlation Between Nordfyns Bank and Stenocare
Can any of the company-specific risk be diversified away by investing in both Nordfyns Bank and Stenocare 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 Stenocare 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 Stenocare AS, you can compare the effects of market volatilities on Nordfyns Bank and Stenocare 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 Stenocare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordfyns Bank and Stenocare.
Diversification Opportunities for Nordfyns Bank and Stenocare
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nordfyns and Stenocare is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Nordfyns Bank AS and Stenocare AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stenocare 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 Stenocare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stenocare AS has no effect on the direction of Nordfyns Bank i.e., Nordfyns Bank and Stenocare go up and down completely randomly.
Pair Corralation between Nordfyns Bank and Stenocare
Assuming the 90 days trading horizon Nordfyns Bank AS is expected to under-perform the Stenocare. But the stock apears to be less risky and, when comparing its historical volatility, Nordfyns Bank AS is 21.19 times less risky than Stenocare. The stock trades about -0.4 of its potential returns per unit of risk. The Stenocare AS is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 140.00 in Stenocare AS on September 3, 2024 and sell it today you would earn a total of 64.00 from holding Stenocare AS or generate 45.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordfyns Bank AS vs. Stenocare AS
Performance |
| Timeline |
| Nordfyns Bank AS |
| Stenocare AS |
Nordfyns Bank and Stenocare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordfyns Bank and Stenocare
The main advantage of trading using opposite Nordfyns Bank and Stenocare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordfyns Bank position performs unexpectedly, Stenocare 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 Stenocare will offset losses from the drop in Stenocare'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 |
| Stenocare vs. Bavarian Nordic | Stenocare vs. Investeringsselskabet Luxor AS | Stenocare vs. cBrain AS | Stenocare vs. Fast Ejendom |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |