Correlation Between Penneo AS and BankInvest Optima
Can any of the company-specific risk be diversified away by investing in both Penneo AS and BankInvest Optima 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 Penneo AS and BankInvest Optima into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Penneo AS and BankInvest Optima 10, you can compare the effects of market volatilities on Penneo AS and BankInvest Optima 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 Penneo AS with a short position of BankInvest Optima. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penneo AS and BankInvest Optima.
Diversification Opportunities for Penneo AS and BankInvest Optima
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Penneo and BankInvest is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Penneo AS and BankInvest Optima 10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInvest Optima and Penneo AS 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 Penneo AS are associated (or correlated) with BankInvest Optima. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInvest Optima has no effect on the direction of Penneo AS i.e., Penneo AS and BankInvest Optima go up and down completely randomly.
Pair Corralation between Penneo AS and BankInvest Optima
Assuming the 90 days trading horizon Penneo AS is expected to under-perform the BankInvest Optima. In addition to that, Penneo AS is 7.89 times more volatile than BankInvest Optima 10. It trades about -0.01 of its total potential returns per unit of risk. BankInvest Optima 10 is currently generating about 0.14 per unit of volatility. If you would invest 12,070 in BankInvest Optima 10 on August 29, 2024 and sell it today you would earn a total of 1,735 from holding BankInvest Optima 10 or generate 14.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 60.28% |
| Values | Daily Returns |
Penneo AS vs. BankInvest Optima 10
Performance |
| Timeline |
| Penneo AS |
| BankInvest Optima |
Penneo AS and BankInvest Optima Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penneo AS and BankInvest Optima
The main advantage of trading using opposite Penneo AS and BankInvest Optima positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penneo AS position performs unexpectedly, BankInvest Optima 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 BankInvest Optima will offset losses from the drop in BankInvest Optima's long position.| Penneo AS vs. cBrain AS | Penneo AS vs. FOM Technologies AS | Penneo AS vs. ChemoMetec AS | Penneo AS vs. BioPorto |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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