Correlation Between Scandinavian Investment and Moens Bank
Can any of the company-specific risk be diversified away by investing in both Scandinavian Investment and Moens 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 Investment and Moens Bank 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 Moens Bank AS, you can compare the effects of market volatilities on Scandinavian Investment and Moens 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 Investment with a short position of Moens Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scandinavian Investment and Moens Bank.
Diversification Opportunities for Scandinavian Investment and Moens Bank
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Scandinavian and Moens is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Scandinavian Investment Group and Moens Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moens Bank AS 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 Moens Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moens Bank AS has no effect on the direction of Scandinavian Investment i.e., Scandinavian Investment and Moens Bank go up and down completely randomly.
Pair Corralation between Scandinavian Investment and Moens Bank
Assuming the 90 days trading horizon Scandinavian Investment Group is expected to under-perform the Moens Bank. In addition to that, Scandinavian Investment is 1.31 times more volatile than Moens Bank AS. It trades about -0.02 of its total potential returns per unit of risk. Moens Bank AS is currently generating about 0.18 per unit of volatility. If you would invest 22,600 in Moens Bank AS on November 3, 2024 and sell it today you would earn a total of 1,200 from holding Moens Bank AS or generate 5.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scandinavian Investment Group vs. Moens Bank AS
Performance |
| Timeline |
| Scandinavian Investment |
| Moens Bank AS |
Scandinavian Investment and Moens Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scandinavian Investment and Moens Bank
The main advantage of trading using opposite Scandinavian Investment and Moens Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scandinavian Investment position performs unexpectedly, Moens 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 Moens Bank will offset losses from the drop in Moens Bank's long position.| Scandinavian Investment vs. North Media AS | Scandinavian Investment vs. Rovsing AS | Scandinavian Investment vs. Alm Brand | Scandinavian Investment vs. SKAKO AS |
| Moens Bank vs. Skjern Bank AS | Moens Bank vs. Lollands Bank | Moens Bank vs. Nordfyns Bank AS | Moens Bank vs. Groenlandsbanken 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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