Correlation Between Overseas Chinese and Jyske Bank
Can any of the company-specific risk be diversified away by investing in both Overseas Chinese and Jyske Bank 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 Overseas Chinese and Jyske Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Overseas Chinese Banking and Jyske Bank AS, you can compare the effects of market volatilities on Overseas Chinese and Jyske Bank 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 Overseas Chinese with a short position of Jyske Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Overseas Chinese and Jyske Bank.
Diversification Opportunities for Overseas Chinese and Jyske Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Overseas and Jyske is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Overseas Chinese Banking and Jyske Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jyske Bank AS and Overseas Chinese 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 Overseas Chinese Banking are associated (or correlated) with Jyske Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jyske Bank AS has no effect on the direction of Overseas Chinese i.e., Overseas Chinese and Jyske Bank go up and down completely randomly.
Pair Corralation between Overseas Chinese and Jyske Bank
If you would invest 2,401 in Overseas Chinese Banking on November 2, 2024 and sell it today you would earn a total of 162.00 from holding Overseas Chinese Banking or generate 6.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Overseas Chinese Banking vs. Jyske Bank AS
Performance |
| Timeline |
| Overseas Chinese Banking |
| Jyske Bank AS |
Overseas Chinese and Jyske Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Overseas Chinese and Jyske Bank
The main advantage of trading using opposite Overseas Chinese and Jyske Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Overseas Chinese position performs unexpectedly, Jyske Bank 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 Jyske Bank will offset losses from the drop in Jyske Bank's long position.| Overseas Chinese vs. Swedbank AB | Overseas Chinese vs. KBC Groep NV | Overseas Chinese vs. Nordea Bank Abp | Overseas Chinese vs. DBS Group Holdings |
| Jyske Bank vs. Baraboo Bancorporation | Jyske Bank vs. Schweizerische Nationalbank | Jyske Bank vs. Danske Bank AS | Jyske Bank vs. Absa Group Limited |
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.
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