Correlation Between Nykredit Invest and Scandinavian Investment
Can any of the company-specific risk be diversified away by investing in both Nykredit Invest and Scandinavian Investment 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 Scandinavian Investment 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 Scandinavian Investment Group, you can compare the effects of market volatilities on Nykredit Invest and Scandinavian Investment 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 Scandinavian Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nykredit Invest and Scandinavian Investment.
Diversification Opportunities for Nykredit Invest and Scandinavian Investment
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nykredit and Scandinavian is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Nykredit Invest Korte and Scandinavian Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scandinavian Investment 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 Scandinavian Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scandinavian Investment has no effect on the direction of Nykredit Invest i.e., Nykredit Invest and Scandinavian Investment go up and down completely randomly.
Pair Corralation between Nykredit Invest and Scandinavian Investment
Assuming the 90 days trading horizon Nykredit Invest Korte is expected to generate 0.03 times more return on investment than Scandinavian Investment. However, Nykredit Invest Korte is 34.9 times less risky than Scandinavian Investment. It trades about -0.03 of its potential returns per unit of risk. Scandinavian Investment Group is currently generating about -0.14 per unit of risk. If you would invest 9,943 in Nykredit Invest Korte on October 9, 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nykredit Invest Korte vs. Scandinavian Investment Group
Performance |
| Timeline |
| Nykredit Invest Korte |
| Scandinavian Investment |
Nykredit Invest and Scandinavian Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nykredit Invest and Scandinavian Investment
The main advantage of trading using opposite Nykredit Invest and Scandinavian Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nykredit Invest position performs unexpectedly, Scandinavian Investment 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 Scandinavian Investment will offset losses from the drop in Scandinavian Investment's long position.| Nykredit Invest vs. Ringkjoebing Landbobank AS | Nykredit Invest vs. Moens Bank AS | Nykredit Invest vs. Vestjysk Bank AS | Nykredit Invest vs. Embla Medical hf |
| Scandinavian Investment vs. North Media AS | Scandinavian Investment vs. Rovsing AS | Scandinavian Investment vs. Alm Brand | Scandinavian Investment vs. SKAKO 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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