Correlation Between PFA Invest and Dataproces Group
Can any of the company-specific risk be diversified away by investing in both PFA Invest and Dataproces Group 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 PFA Invest and Dataproces Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PFA Invest Kreditobligationer and Dataproces Group AS, you can compare the effects of market volatilities on PFA Invest and Dataproces Group 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 PFA Invest with a short position of Dataproces Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of PFA Invest and Dataproces Group.
Diversification Opportunities for PFA Invest and Dataproces Group
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PFA and Dataproces is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding PFA Invest Kreditobligationer and Dataproces Group AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dataproces Group and PFA 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 PFA Invest Kreditobligationer are associated (or correlated) with Dataproces Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dataproces Group has no effect on the direction of PFA Invest i.e., PFA Invest and Dataproces Group go up and down completely randomly.
Pair Corralation between PFA Invest and Dataproces Group
Assuming the 90 days trading horizon PFA Invest Kreditobligationer is expected to generate 0.03 times more return on investment than Dataproces Group. However, PFA Invest Kreditobligationer is 33.85 times less risky than Dataproces Group. It trades about 0.35 of its potential returns per unit of risk. Dataproces Group AS is currently generating about -0.02 per unit of risk. If you would invest 10,404 in PFA Invest Kreditobligationer on August 31, 2024 and sell it today you would earn a total of 84.00 from holding PFA Invest Kreditobligationer or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
PFA Invest Kreditobligationer vs. Dataproces Group AS
Performance |
| Timeline |
| PFA Invest Kreditobl |
| Dataproces Group |
PFA Invest and Dataproces Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PFA Invest and Dataproces Group
The main advantage of trading using opposite PFA Invest and Dataproces Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PFA Invest position performs unexpectedly, Dataproces Group 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 Dataproces Group will offset losses from the drop in Dataproces Group's long position.| PFA Invest vs. Dataproces Group AS | PFA Invest vs. Moens Bank AS | PFA Invest vs. BankIn Bredygt Klimaakt | PFA Invest vs. BankInvest Value Globale |
| Dataproces Group vs. Penneo AS | Dataproces Group vs. Bactiquant AS | Dataproces Group vs. cBrain AS | Dataproces Group vs. FOM Technologies 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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