Correlation Between Ringkjoebing Landbobank and BankInv GloAkColum
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By analyzing existing cross correlation between Ringkjoebing Landbobank AS and BankInv GloAkColum Threadndl, you can compare the effects of market volatilities on Ringkjoebing Landbobank and BankInv GloAkColum 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 Ringkjoebing Landbobank with a short position of BankInv GloAkColum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ringkjoebing Landbobank and BankInv GloAkColum.
Diversification Opportunities for Ringkjoebing Landbobank and BankInv GloAkColum
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ringkjoebing and BankInv is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Ringkjoebing Landbobank AS and BankInv GloAkColum Threadndl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInv GloAkColum and Ringkjoebing Landbobank 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 Ringkjoebing Landbobank AS are associated (or correlated) with BankInv GloAkColum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInv GloAkColum has no effect on the direction of Ringkjoebing Landbobank i.e., Ringkjoebing Landbobank and BankInv GloAkColum go up and down completely randomly.
Pair Corralation between Ringkjoebing Landbobank and BankInv GloAkColum
Assuming the 90 days trading horizon Ringkjoebing Landbobank is expected to generate 2.02 times less return on investment than BankInv GloAkColum. But when comparing it to its historical volatility, Ringkjoebing Landbobank AS is 1.1 times less risky than BankInv GloAkColum. It trades about 0.03 of its potential returns per unit of risk. BankInv GloAkColum Threadndl is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 14,115 in BankInv GloAkColum Threadndl on August 29, 2024 and sell it today you would earn a total of 145.00 from holding BankInv GloAkColum Threadndl or generate 1.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 77.27% |
| Values | Daily Returns |
Ringkjoebing Landbobank AS vs. BankInv GloAkColum Threadndl
Performance |
| Timeline |
| Ringkjoebing Landbobank |
| BankInv GloAkColum |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Ringkjoebing Landbobank and BankInv GloAkColum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ringkjoebing Landbobank and BankInv GloAkColum
The main advantage of trading using opposite Ringkjoebing Landbobank and BankInv GloAkColum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ringkjoebing Landbobank position performs unexpectedly, BankInv GloAkColum 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 BankInv GloAkColum will offset losses from the drop in BankInv GloAkColum's long position.| Ringkjoebing Landbobank vs. Dataproces Group AS | Ringkjoebing Landbobank vs. cBrain AS | Ringkjoebing Landbobank vs. ALK Abell AS | Ringkjoebing Landbobank vs. ChemoMetec AS |
| BankInv GloAkColum vs. MapsPeople AS | BankInv GloAkColum vs. Penneo AS | BankInv GloAkColum vs. Dataproces Group AS | BankInv GloAkColum vs. Orderyoyo 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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