Correlation Between Skjern Bank and BankInv Kort
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By analyzing existing cross correlation between Skjern Bank AS and BankInv Kort HY, you can compare the effects of market volatilities on Skjern Bank and BankInv Kort 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 Skjern Bank with a short position of BankInv Kort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skjern Bank and BankInv Kort.
Diversification Opportunities for Skjern Bank and BankInv Kort
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Skjern and BankInv is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Skjern Bank AS and BankInv Kort HY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInv Kort HY and Skjern Bank 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 Skjern Bank AS are associated (or correlated) with BankInv Kort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInv Kort HY has no effect on the direction of Skjern Bank i.e., Skjern Bank and BankInv Kort go up and down completely randomly.
Pair Corralation between Skjern Bank and BankInv Kort
Assuming the 90 days trading horizon Skjern Bank AS is expected to under-perform the BankInv Kort. In addition to that, Skjern Bank is 13.33 times more volatile than BankInv Kort HY. It trades about -0.16 of its total potential returns per unit of risk. BankInv Kort HY is currently generating about 0.16 per unit of volatility. If you would invest 10,335 in BankInv Kort HY on November 1, 2024 and sell it today you would earn a total of 55.00 from holding BankInv Kort HY or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Skjern Bank AS vs. BankInv Kort HY
Performance |
| Timeline |
| Skjern Bank AS |
| BankInv Kort HY |
Skjern Bank and BankInv Kort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skjern Bank and BankInv Kort
The main advantage of trading using opposite Skjern Bank and BankInv Kort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skjern Bank position performs unexpectedly, BankInv Kort 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 BankInv Kort will offset losses from the drop in BankInv Kort's long position.| Skjern Bank vs. NTG Nordic Transport | Skjern Bank vs. Vestjysk Bank AS | Skjern Bank vs. Laan Spar Bank | Skjern Bank vs. Moens Bank AS |
| BankInv Kort vs. Jyske Bank AS | BankInv Kort vs. Vestjysk Bank AS | BankInv Kort vs. Nordea Bank Abp | BankInv Kort vs. Djurslands 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 Stocks Directory module to find actively traded stocks across global markets.
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