Correlation Between Skjern Bank and Investin Optimal
Can any of the company-specific risk be diversified away by investing in both Skjern Bank and Investin Optimal 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 Skjern Bank and Investin Optimal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Skjern Bank AS and Investin Optimal Stabil, you can compare the effects of market volatilities on Skjern Bank and Investin Optimal 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 Investin Optimal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skjern Bank and Investin Optimal.
Diversification Opportunities for Skjern Bank and Investin Optimal
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Skjern and Investin is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Skjern Bank AS and Investin Optimal Stabil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investin Optimal Stabil 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 Investin Optimal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investin Optimal Stabil has no effect on the direction of Skjern Bank i.e., Skjern Bank and Investin Optimal go up and down completely randomly.
Pair Corralation between Skjern Bank and Investin Optimal
Assuming the 90 days trading horizon Skjern Bank AS is expected to generate 14.23 times more return on investment than Investin Optimal. However, Skjern Bank is 14.23 times more volatile than Investin Optimal Stabil. It trades about 0.35 of its potential returns per unit of risk. Investin Optimal Stabil is currently generating about 0.13 per unit of risk. If you would invest 15,700 in Skjern Bank AS on September 21, 2024 and sell it today you would earn a total of 4,150 from holding Skjern Bank AS or generate 26.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Skjern Bank AS vs. Investin Optimal Stabil
Performance |
| Timeline |
| Skjern Bank AS |
| Investin Optimal Stabil |
Skjern Bank and Investin Optimal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skjern Bank and Investin Optimal
The main advantage of trading using opposite Skjern Bank and Investin Optimal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skjern Bank position performs unexpectedly, Investin Optimal 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 Investin Optimal will offset losses from the drop in Investin Optimal's long position.| Skjern Bank vs. TROPHY GAMES Development | Skjern Bank vs. Djurslands Bank | Skjern Bank vs. NTG Nordic Transport | Skjern Bank vs. Nordinvestments AS |
| Investin Optimal vs. Dataproces Group AS | Investin Optimal vs. Skjern Bank AS | Investin Optimal vs. BankInvest Value Globale | Investin Optimal vs. Kreditbanken 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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