Correlation Between Nykredit Invest and Cessatech
Can any of the company-specific risk be diversified away by investing in both Nykredit Invest and Cessatech 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 Cessatech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nykredit Invest Korte and Cessatech AS, you can compare the effects of market volatilities on Nykredit Invest and Cessatech 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 Cessatech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nykredit Invest and Cessatech.
Diversification Opportunities for Nykredit Invest and Cessatech
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nykredit and Cessatech is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Nykredit Invest Korte and Cessatech AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cessatech AS 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 Korte are associated (or correlated) with Cessatech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cessatech AS has no effect on the direction of Nykredit Invest i.e., Nykredit Invest and Cessatech go up and down completely randomly.
Pair Corralation between Nykredit Invest and Cessatech
Assuming the 90 days trading horizon Nykredit Invest Korte is expected to generate 0.02 times more return on investment than Cessatech. However, Nykredit Invest Korte is 40.39 times less risky than Cessatech. It trades about -0.02 of its potential returns per unit of risk. Cessatech AS is currently generating about -0.07 per unit of risk. If you would invest 9,949 in Nykredit Invest Korte on November 3, 2024 and sell it today you would lose (3.00) from holding Nykredit Invest Korte or give up 0.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Nykredit Invest Korte vs. Cessatech AS
Performance |
| Timeline |
| Nykredit Invest Korte |
| Cessatech AS |
Nykredit Invest and Cessatech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nykredit Invest and Cessatech
The main advantage of trading using opposite Nykredit Invest and Cessatech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nykredit Invest position performs unexpectedly, Cessatech 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 Cessatech will offset losses from the drop in Cessatech's long position.| Nykredit Invest vs. Kreditbanken AS | Nykredit Invest vs. Sydbank AS | Nykredit Invest vs. Nordinvestments AS | Nykredit Invest vs. Scandinavian Investment Group |
| Cessatech vs. Sydbank AS | Cessatech vs. Scandinavian Tobacco Group | Cessatech vs. FOM Technologies AS | Cessatech vs. Nordinvestments 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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