Correlation Between Scandinavian Brake and Jyske Bank
Can any of the company-specific risk be diversified away by investing in both Scandinavian Brake and Jyske 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 Scandinavian Brake and Jyske Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scandinavian Brake Systems and Jyske Bank AS, you can compare the effects of market volatilities on Scandinavian Brake and Jyske 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 Scandinavian Brake with a short position of Jyske Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scandinavian Brake and Jyske Bank.
Diversification Opportunities for Scandinavian Brake and Jyske Bank
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Scandinavian and Jyske is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Scandinavian Brake Systems and Jyske Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jyske Bank AS and Scandinavian Brake 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 Scandinavian Brake Systems are associated (or correlated) with Jyske Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jyske Bank AS has no effect on the direction of Scandinavian Brake i.e., Scandinavian Brake and Jyske Bank go up and down completely randomly.
Pair Corralation between Scandinavian Brake and Jyske Bank
Assuming the 90 days trading horizon Scandinavian Brake Systems is expected to generate 0.29 times more return on investment than Jyske Bank. However, Scandinavian Brake Systems is 3.41 times less risky than Jyske Bank. It trades about 0.03 of its potential returns per unit of risk. Jyske Bank AS is currently generating about -0.17 per unit of risk. If you would invest 1,170 in Scandinavian Brake Systems on August 29, 2024 and sell it today you would earn a total of 5.00 from holding Scandinavian Brake Systems or generate 0.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Scandinavian Brake Systems vs. Jyske Bank AS
Performance |
| Timeline |
| Scandinavian Brake |
| Jyske Bank AS |
Scandinavian Brake and Jyske Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scandinavian Brake and Jyske Bank
The main advantage of trading using opposite Scandinavian Brake and Jyske Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scandinavian Brake position performs unexpectedly, Jyske 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 Jyske Bank will offset losses from the drop in Jyske Bank's long position.| Scandinavian Brake vs. SKAKO AS | Scandinavian Brake vs. Newcap Holding AS | Scandinavian Brake vs. Columbus AS | Scandinavian Brake vs. Rovsing AS |
| Jyske Bank vs. Fynske Bank AS | Jyske Bank vs. Ringkjoebing Landbobank AS | Jyske Bank vs. BankIn Bredygt Klimaakt | Jyske Bank vs. Danske Andelskassers 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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