Correlation Between Scandinavian Investment and Jyske Invest
Can any of the company-specific risk be diversified away by investing in both Scandinavian Investment and Jyske Invest 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 Investment and Jyske Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scandinavian Investment Group and Jyske Invest Lange, you can compare the effects of market volatilities on Scandinavian Investment and Jyske 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 Scandinavian Investment with a short position of Jyske Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scandinavian Investment and Jyske Invest.
Diversification Opportunities for Scandinavian Investment and Jyske Invest
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 Investment Group and Jyske Invest Lange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jyske Invest Lange and Scandinavian Investment 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 Investment Group are associated (or correlated) with Jyske Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jyske Invest Lange has no effect on the direction of Scandinavian Investment i.e., Scandinavian Investment and Jyske Invest go up and down completely randomly.
Pair Corralation between Scandinavian Investment and Jyske Invest
Assuming the 90 days trading horizon Scandinavian Investment Group is expected to under-perform the Jyske Invest. In addition to that, Scandinavian Investment is 13.07 times more volatile than Jyske Invest Lange. It trades about -0.14 of its total potential returns per unit of risk. Jyske Invest Lange is currently generating about -0.2 per unit of volatility. If you would invest 9,314 in Jyske Invest Lange on October 9, 2024 and sell it today you would lose (50.00) from holding Jyske Invest Lange or give up 0.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scandinavian Investment Group vs. Jyske Invest Lange
Performance |
| Timeline |
| Scandinavian Investment |
| Jyske Invest Lange |
Scandinavian Investment and Jyske Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scandinavian Investment and Jyske Invest
The main advantage of trading using opposite Scandinavian Investment and Jyske Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scandinavian Investment position performs unexpectedly, Jyske 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 Jyske Invest will offset losses from the drop in Jyske Invest's long position.| Scandinavian Investment vs. North Media AS | Scandinavian Investment vs. Rovsing AS | Scandinavian Investment vs. Alm Brand | Scandinavian Investment vs. SKAKO AS |
| Jyske Invest vs. Novo Nordisk AS | Jyske Invest vs. Nordea Bank Abp | Jyske Invest vs. DSV Panalpina AS | Jyske Invest vs. AP Mller |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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