Correlation Between Silkeborg and Flgger Group
Can any of the company-specific risk be diversified away by investing in both Silkeborg and Flgger 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 Silkeborg and Flgger Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silkeborg IF Invest and Flgger group AS, you can compare the effects of market volatilities on Silkeborg and Flgger 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 Silkeborg with a short position of Flgger Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silkeborg and Flgger Group.
Diversification Opportunities for Silkeborg and Flgger Group
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Silkeborg and Flgger is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Silkeborg IF Invest and Flgger group AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flgger group AS and Silkeborg 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 Silkeborg IF Invest are associated (or correlated) with Flgger Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flgger group AS has no effect on the direction of Silkeborg i.e., Silkeborg and Flgger Group go up and down completely randomly.
Pair Corralation between Silkeborg and Flgger Group
Assuming the 90 days trading horizon Silkeborg IF Invest is expected to generate 4.45 times more return on investment than Flgger Group. However, Silkeborg is 4.45 times more volatile than Flgger group AS. It trades about 0.3 of its potential returns per unit of risk. Flgger group AS is currently generating about 0.13 per unit of risk. If you would invest 3,040 in Silkeborg IF Invest on September 3, 2024 and sell it today you would earn a total of 840.00 from holding Silkeborg IF Invest or generate 27.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silkeborg IF Invest vs. Flgger group AS
Performance |
| Timeline |
| Silkeborg IF Invest |
| Flgger group AS |
Silkeborg and Flgger Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silkeborg and Flgger Group
The main advantage of trading using opposite Silkeborg and Flgger Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silkeborg position performs unexpectedly, Flgger 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 Flgger Group will offset losses from the drop in Flgger Group's long position.| Silkeborg vs. PARKEN Sport Entertainment | Silkeborg vs. Aalborg Boldspilklub AS | Silkeborg vs. Broendbyernes IF Fodbold | Silkeborg vs. Strategic Investments AS |
| Flgger Group vs. Per Aarsleff Holding | Flgger Group vs. North Media AS | Flgger Group vs. HH International AS | Flgger Group vs. Matas 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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