Correlation Between Skjern Bank and Scandinavian Medical
Can any of the company-specific risk be diversified away by investing in both Skjern Bank and Scandinavian Medical 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 Scandinavian Medical 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 Scandinavian Medical Solutions, you can compare the effects of market volatilities on Skjern Bank and Scandinavian Medical 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 Scandinavian Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skjern Bank and Scandinavian Medical.
Diversification Opportunities for Skjern Bank and Scandinavian Medical
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Skjern and Scandinavian is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Skjern Bank AS and Scandinavian Medical Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scandinavian Medical 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 Scandinavian Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scandinavian Medical has no effect on the direction of Skjern Bank i.e., Skjern Bank and Scandinavian Medical go up and down completely randomly.
Pair Corralation between Skjern Bank and Scandinavian Medical
Assuming the 90 days trading horizon Skjern Bank AS is expected to under-perform the Scandinavian Medical. But the stock apears to be less risky and, when comparing its historical volatility, Skjern Bank AS is 4.15 times less risky than Scandinavian Medical. The stock trades about -0.43 of its potential returns per unit of risk. The Scandinavian Medical Solutions is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 628.00 in Scandinavian Medical Solutions on September 3, 2024 and sell it today you would lose (14.00) from holding Scandinavian Medical Solutions or give up 2.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Skjern Bank AS vs. Scandinavian Medical Solutions
Performance |
| Timeline |
| Skjern Bank AS |
| Scandinavian Medical |
Skjern Bank and Scandinavian Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skjern Bank and Scandinavian Medical
The main advantage of trading using opposite Skjern Bank and Scandinavian Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skjern Bank position performs unexpectedly, Scandinavian Medical 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 Scandinavian Medical will offset losses from the drop in Scandinavian Medical's long position.| Skjern Bank vs. Nordinvestments AS | Skjern Bank vs. BankInvest Value Globale | Skjern Bank vs. Dataproces Group AS | Skjern Bank vs. Sydbank AS |
| Scandinavian Medical vs. Novo Nordisk AS | Scandinavian Medical vs. Nordea Bank Abp | Scandinavian Medical vs. DSV Panalpina AS | Scandinavian Medical vs. AP Mller |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |