Correlation Between Prime Office and Hvidbjerg Bank
Can any of the company-specific risk be diversified away by investing in both Prime Office and Hvidbjerg 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 Prime Office and Hvidbjerg Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prime Office AS and Hvidbjerg Bank, you can compare the effects of market volatilities on Prime Office and Hvidbjerg 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 Prime Office with a short position of Hvidbjerg Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prime Office and Hvidbjerg Bank.
Diversification Opportunities for Prime Office and Hvidbjerg Bank
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Prime and Hvidbjerg is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Prime Office AS and Hvidbjerg Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hvidbjerg Bank and Prime Office 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 Prime Office AS are associated (or correlated) with Hvidbjerg Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hvidbjerg Bank has no effect on the direction of Prime Office i.e., Prime Office and Hvidbjerg Bank go up and down completely randomly.
Pair Corralation between Prime Office and Hvidbjerg Bank
Assuming the 90 days trading horizon Prime Office AS is expected to under-perform the Hvidbjerg Bank. In addition to that, Prime Office is 1.52 times more volatile than Hvidbjerg Bank. It trades about -0.03 of its total potential returns per unit of risk. Hvidbjerg Bank is currently generating about 0.03 per unit of volatility. If you would invest 10,300 in Hvidbjerg Bank on August 29, 2024 and sell it today you would earn a total of 1,500 from holding Hvidbjerg Bank or generate 14.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prime Office AS vs. Hvidbjerg Bank
Performance |
| Timeline |
| Prime Office AS |
| Hvidbjerg Bank |
Prime Office and Hvidbjerg Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prime Office and Hvidbjerg Bank
The main advantage of trading using opposite Prime Office and Hvidbjerg Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prime Office position performs unexpectedly, Hvidbjerg 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 Hvidbjerg Bank will offset losses from the drop in Hvidbjerg Bank's long position.| Prime Office vs. BioPorto | Prime Office vs. Newcap Holding AS | Prime Office vs. Agat Ejendomme AS | Prime Office vs. PF Atlantic Petroleum |
| Hvidbjerg Bank vs. Dataproces Group AS | Hvidbjerg Bank vs. cBrain AS | Hvidbjerg Bank vs. ALK Abell AS | Hvidbjerg Bank vs. ChemoMetec 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |