Correlation Between SKAKO AS and Dantax
Can any of the company-specific risk be diversified away by investing in both SKAKO AS and Dantax 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 SKAKO AS and Dantax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SKAKO AS and Dantax, you can compare the effects of market volatilities on SKAKO AS and Dantax 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 SKAKO AS with a short position of Dantax. Check out your portfolio center. Please also check ongoing floating volatility patterns of SKAKO AS and Dantax.
Diversification Opportunities for SKAKO AS and Dantax
Very weak diversification
The 3 months correlation between SKAKO and Dantax is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding SKAKO AS and Dantax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dantax and SKAKO AS 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 SKAKO AS are associated (or correlated) with Dantax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dantax has no effect on the direction of SKAKO AS i.e., SKAKO AS and Dantax go up and down completely randomly.
Pair Corralation between SKAKO AS and Dantax
Assuming the 90 days trading horizon SKAKO AS is expected to generate 0.94 times more return on investment than Dantax. However, SKAKO AS is 1.06 times less risky than Dantax. It trades about -0.06 of its potential returns per unit of risk. Dantax is currently generating about -0.26 per unit of risk. If you would invest 7,980 in SKAKO AS on August 29, 2024 and sell it today you would lose (300.00) from holding SKAKO AS or give up 3.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
SKAKO AS vs. Dantax
Performance |
| Timeline |
| SKAKO AS |
| Dantax |
SKAKO AS and Dantax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SKAKO AS and Dantax
The main advantage of trading using opposite SKAKO AS and Dantax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SKAKO AS position performs unexpectedly, Dantax 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 Dantax will offset losses from the drop in Dantax's long position.| SKAKO AS vs. North Media AS | SKAKO AS vs. HH International AS | SKAKO AS vs. Per Aarsleff Holding | SKAKO AS vs. First Farms AS |
| Dantax vs. Groenlandsbanken AS | Dantax vs. Investeringsselskabet Luxor AS | Dantax vs. RIAS AS | Dantax vs. Lollands 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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