Correlation Between Nykredit Invest and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Nykredit Invest and Dow Jones 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 Nykredit Invest and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nykredit Invest Danske and Dow Jones Industrial, you can compare the effects of market volatilities on Nykredit Invest and Dow Jones 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 Nykredit Invest with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nykredit Invest and Dow Jones.
Diversification Opportunities for Nykredit Invest and Dow Jones
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nykredit and Dow is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Nykredit Invest Danske and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Nykredit Invest 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 Nykredit Invest Danske are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Nykredit Invest i.e., Nykredit Invest and Dow Jones go up and down completely randomly.
Pair Corralation between Nykredit Invest and Dow Jones
Assuming the 90 days trading horizon Nykredit Invest Danske is expected to under-perform the Dow Jones. In addition to that, Nykredit Invest is 1.58 times more volatile than Dow Jones Industrial. It trades about -0.08 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.06 per unit of volatility. If you would invest 4,472,206 in Dow Jones Industrial on November 27, 2024 and sell it today you would lose (126,085) from holding Dow Jones Industrial or give up 2.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nykredit Invest Danske vs. Dow Jones Industrial
Performance |
| Timeline |
Nykredit Invest and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Nykredit Invest Danske
Pair trading matchups for Nykredit Invest
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Nykredit Invest and Dow Jones
The main advantage of trading using opposite Nykredit Invest and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nykredit Invest position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Nykredit Invest vs. PARKEN Sport Entertainment | Nykredit Invest vs. Cessatech AS | Nykredit Invest vs. BankInvest Value Globale | Nykredit Invest vs. Ringkjoebing Landbobank 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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