Correlation Between Skjern Bank and Nordea Invest
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By analyzing existing cross correlation between Skjern Bank AS and Nordea Invest Stabile, you can compare the effects of market volatilities on Skjern Bank and Nordea 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 Skjern Bank with a short position of Nordea Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skjern Bank and Nordea Invest.
Diversification Opportunities for Skjern Bank and Nordea Invest
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Skjern and Nordea is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Skjern Bank AS and Nordea Invest Stabile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Stabile 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 Nordea Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Invest Stabile has no effect on the direction of Skjern Bank i.e., Skjern Bank and Nordea Invest go up and down completely randomly.
Pair Corralation between Skjern Bank and Nordea Invest
Assuming the 90 days trading horizon Skjern Bank AS is expected to generate 2.95 times more return on investment than Nordea Invest. However, Skjern Bank is 2.95 times more volatile than Nordea Invest Stabile. It trades about 0.07 of its potential returns per unit of risk. Nordea Invest Stabile is currently generating about 0.06 per unit of risk. If you would invest 11,596 in Skjern Bank AS on September 20, 2024 and sell it today you would earn a total of 8,254 from holding Skjern Bank AS or generate 71.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.57% |
| Values | Daily Returns |
Skjern Bank AS vs. Nordea Invest Stabile
Performance |
| Timeline |
| Skjern Bank AS |
| Nordea Invest Stabile |
Skjern Bank and Nordea Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skjern Bank and Nordea Invest
The main advantage of trading using opposite Skjern Bank and Nordea Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skjern Bank position performs unexpectedly, Nordea 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 Nordea Invest will offset losses from the drop in Nordea Invest's long position.| Skjern Bank vs. NTG Nordic Transport | Skjern Bank vs. Alefarm Brewing AS | Skjern Bank vs. PARKEN Sport Entertainment | Skjern Bank vs. Dataproces Group AS |
| Nordea Invest vs. Jyske Bank AS | Nordea Invest vs. Kreditbanken AS | Nordea Invest vs. North Media AS | Nordea Invest vs. Strategic Investments 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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