Correlation Between Ringkjoebing Landbobank and Nordea Invest
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By analyzing existing cross correlation between Ringkjoebing Landbobank AS and Nordea Invest Basis, you can compare the effects of market volatilities on Ringkjoebing Landbobank and Nordea Invest 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 Nordea Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ringkjoebing Landbobank and Nordea Invest.
Diversification Opportunities for Ringkjoebing Landbobank and Nordea Invest
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ringkjoebing and Nordea is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Ringkjoebing Landbobank AS and Nordea Invest Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Basis 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 Nordea Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Invest Basis has no effect on the direction of Ringkjoebing Landbobank i.e., Ringkjoebing Landbobank and Nordea Invest go up and down completely randomly.
Pair Corralation between Ringkjoebing Landbobank and Nordea Invest
Assuming the 90 days trading horizon Ringkjoebing Landbobank AS is expected to generate 2.93 times more return on investment than Nordea Invest. However, Ringkjoebing Landbobank is 2.93 times more volatile than Nordea Invest Basis. It trades about 0.05 of its potential returns per unit of risk. Nordea Invest Basis is currently generating about -0.12 per unit of risk. If you would invest 116,200 in Ringkjoebing Landbobank AS on September 23, 2024 and sell it today you would earn a total of 1,400 from holding Ringkjoebing Landbobank AS or generate 1.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ringkjoebing Landbobank AS vs. Nordea Invest Basis
Performance |
| Timeline |
| Ringkjoebing Landbobank |
| Nordea Invest Basis |
Ringkjoebing Landbobank and Nordea Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ringkjoebing Landbobank and Nordea Invest
The main advantage of trading using opposite Ringkjoebing Landbobank and Nordea Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ringkjoebing Landbobank position performs unexpectedly, Nordea Invest 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 Nordea Invest will offset losses from the drop in Nordea Invest's long position.| Ringkjoebing Landbobank vs. Sydbank AS | Ringkjoebing Landbobank vs. Jyske Bank AS | Ringkjoebing Landbobank vs. Royal Unibrew AS | Ringkjoebing Landbobank vs. Spar Nord Bank |
| Nordea Invest vs. Ringkjoebing Landbobank AS | Nordea Invest vs. TROPHY GAMES Development | Nordea Invest vs. Sydbank AS | Nordea Invest vs. Hvidbjerg Bank |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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