Correlation Between PARKEN Sport and BankIn Bredygt
Can any of the company-specific risk be diversified away by investing in both PARKEN Sport and BankIn Bredygt 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 PARKEN Sport and BankIn Bredygt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PARKEN Sport Entertainment and BankIn Bredygt Klimaakt, you can compare the effects of market volatilities on PARKEN Sport and BankIn Bredygt 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 PARKEN Sport with a short position of BankIn Bredygt. Check out your portfolio center. Please also check ongoing floating volatility patterns of PARKEN Sport and BankIn Bredygt.
Diversification Opportunities for PARKEN Sport and BankIn Bredygt
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PARKEN and BankIn is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding PARKEN Sport Entertainment and BankIn Bredygt Klimaakt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankIn Bredygt Klimaakt and PARKEN Sport 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 PARKEN Sport Entertainment are associated (or correlated) with BankIn Bredygt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankIn Bredygt Klimaakt has no effect on the direction of PARKEN Sport i.e., PARKEN Sport and BankIn Bredygt go up and down completely randomly.
Pair Corralation between PARKEN Sport and BankIn Bredygt
Assuming the 90 days trading horizon PARKEN Sport is expected to generate 19.42 times less return on investment than BankIn Bredygt. In addition to that, PARKEN Sport is 1.36 times more volatile than BankIn Bredygt Klimaakt. It trades about 0.0 of its total potential returns per unit of risk. BankIn Bredygt Klimaakt is currently generating about 0.09 per unit of volatility. If you would invest 9,000 in BankIn Bredygt Klimaakt on September 1, 2024 and sell it today you would earn a total of 1,765 from holding BankIn Bredygt Klimaakt or generate 19.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 53.7% |
| Values | Daily Returns |
PARKEN Sport Entertainment vs. BankIn Bredygt Klimaakt
Performance |
| Timeline |
| PARKEN Sport Enterta |
| BankIn Bredygt Klimaakt |
PARKEN Sport and BankIn Bredygt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PARKEN Sport and BankIn Bredygt
The main advantage of trading using opposite PARKEN Sport and BankIn Bredygt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PARKEN Sport position performs unexpectedly, BankIn Bredygt 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 BankIn Bredygt will offset losses from the drop in BankIn Bredygt's long position.| PARKEN Sport vs. Broendbyernes IF Fodbold | PARKEN Sport vs. Matas AS | PARKEN Sport vs. NKT AS | PARKEN Sport vs. Jyske Bank AS |
| BankIn Bredygt vs. Novo Nordisk AS | BankIn Bredygt vs. Nordea Bank Abp | BankIn Bredygt vs. DSV Panalpina AS | BankIn Bredygt vs. AP Mller |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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