Correlation Between Bank Central and Jyske Bank
Can any of the company-specific risk be diversified away by investing in both Bank Central 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 Bank Central and Jyske Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Central Asia and Jyske Bank AS, you can compare the effects of market volatilities on Bank Central 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 Bank Central with a short position of Jyske Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and Jyske Bank.
Diversification Opportunities for Bank Central and Jyske Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Jyske is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia 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 Bank Central 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 Bank Central Asia 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 Bank Central i.e., Bank Central and Jyske Bank go up and down completely randomly.
Pair Corralation between Bank Central and Jyske Bank
Assuming the 90 days horizon Bank Central is expected to generate 6.6 times less return on investment than Jyske Bank. But when comparing it to its historical volatility, Bank Central Asia is 1.11 times less risky than Jyske Bank. It trades about 0.01 of its potential returns per unit of risk. Jyske Bank AS is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 968.00 in Jyske Bank AS on November 2, 2024 and sell it today you would earn a total of 461.00 from holding Jyske Bank AS or generate 47.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Bank Central Asia vs. Jyske Bank AS
Performance |
| Timeline |
| Bank Central Asia |
| Jyske Bank AS |
Bank Central and Jyske Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Central and Jyske Bank
The main advantage of trading using opposite Bank Central and Jyske Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central 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.| Bank Central vs. Nedbank Group | Bank Central vs. Standard Bank Group | Bank Central vs. Kasikornbank Public Co | Bank Central vs. KBC Groep NV |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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