Correlation Between Nykredit Invest and HusCompagniet
Can any of the company-specific risk be diversified away by investing in both Nykredit Invest and HusCompagniet 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 HusCompagniet 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 HusCompagniet AS, you can compare the effects of market volatilities on Nykredit Invest and HusCompagniet 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 HusCompagniet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nykredit Invest and HusCompagniet.
Diversification Opportunities for Nykredit Invest and HusCompagniet
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nykredit and HusCompagniet is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Nykredit Invest Korte and HusCompagniet AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HusCompagniet 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 HusCompagniet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HusCompagniet AS has no effect on the direction of Nykredit Invest i.e., Nykredit Invest and HusCompagniet go up and down completely randomly.
Pair Corralation between Nykredit Invest and HusCompagniet
Assuming the 90 days trading horizon Nykredit Invest Korte is expected to generate 0.03 times more return on investment than HusCompagniet. However, Nykredit Invest Korte is 31.92 times less risky than HusCompagniet. It trades about 0.27 of its potential returns per unit of risk. HusCompagniet AS is currently generating about -0.08 per unit of risk. If you would invest 9,900 in Nykredit Invest Korte on September 13, 2024 and sell it today you would earn a total of 38.00 from holding Nykredit Invest Korte or generate 0.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nykredit Invest Korte vs. HusCompagniet AS
Performance |
| Timeline |
| Nykredit Invest Korte |
| HusCompagniet AS |
Nykredit Invest and HusCompagniet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nykredit Invest and HusCompagniet
The main advantage of trading using opposite Nykredit Invest and HusCompagniet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nykredit Invest position performs unexpectedly, HusCompagniet 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 HusCompagniet will offset losses from the drop in HusCompagniet's long position.| Nykredit Invest vs. Novo Nordisk AS | Nykredit Invest vs. Nordea Bank Abp | Nykredit Invest vs. DSV Panalpina AS | Nykredit Invest vs. AP Mller |
| HusCompagniet vs. Matas AS | HusCompagniet vs. Netcompany Group AS | HusCompagniet vs. FLSmidth Co | HusCompagniet vs. GN Store Nord |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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