Correlation Between Scandinavian Medical and Jyske Invest
Can any of the company-specific risk be diversified away by investing in both Scandinavian Medical and Jyske Invest 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 Scandinavian Medical and Jyske Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scandinavian Medical Solutions and Jyske Invest Lange, you can compare the effects of market volatilities on Scandinavian Medical and Jyske 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 Scandinavian Medical with a short position of Jyske Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scandinavian Medical and Jyske Invest.
Diversification Opportunities for Scandinavian Medical and Jyske Invest
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Scandinavian and Jyske is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Scandinavian Medical Solutions and Jyske Invest Lange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jyske Invest Lange and Scandinavian Medical 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 Scandinavian Medical Solutions are associated (or correlated) with Jyske Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jyske Invest Lange has no effect on the direction of Scandinavian Medical i.e., Scandinavian Medical and Jyske Invest go up and down completely randomly.
Pair Corralation between Scandinavian Medical and Jyske Invest
Assuming the 90 days trading horizon Scandinavian Medical Solutions is expected to generate 7.26 times more return on investment than Jyske Invest. However, Scandinavian Medical is 7.26 times more volatile than Jyske Invest Lange. It trades about 0.02 of its potential returns per unit of risk. Jyske Invest Lange is currently generating about -0.05 per unit of risk. If you would invest 592.00 in Scandinavian Medical Solutions on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Scandinavian Medical Solutions or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scandinavian Medical Solutions vs. Jyske Invest Lange
Performance |
| Timeline |
| Scandinavian Medical |
| Jyske Invest Lange |
Scandinavian Medical and Jyske Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scandinavian Medical and Jyske Invest
The main advantage of trading using opposite Scandinavian Medical and Jyske Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scandinavian Medical position performs unexpectedly, Jyske 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 Jyske Invest will offset losses from the drop in Jyske Invest's long position.| Scandinavian Medical vs. Kreditbanken AS | Scandinavian Medical vs. Prime Office AS | Scandinavian Medical vs. Laan Spar Bank | Scandinavian Medical vs. Strategic Investments AS |
| Jyske Invest vs. Scandinavian Medical Solutions | Jyske Invest vs. Carnegie Wealth Management | Jyske Invest vs. TROPHY GAMES Development | Jyske Invest vs. Laan Spar 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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