Correlation Between Spar Nord and Aalborg Boldspilklub
Can any of the company-specific risk be diversified away by investing in both Spar Nord and Aalborg Boldspilklub 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 Spar Nord and Aalborg Boldspilklub into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spar Nord Bank and Aalborg Boldspilklub AS, you can compare the effects of market volatilities on Spar Nord and Aalborg Boldspilklub 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 Spar Nord with a short position of Aalborg Boldspilklub. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spar Nord and Aalborg Boldspilklub.
Diversification Opportunities for Spar Nord and Aalborg Boldspilklub
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Spar and Aalborg is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Spar Nord Bank and Aalborg Boldspilklub AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aalborg Boldspilklub and Spar Nord 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 Spar Nord Bank are associated (or correlated) with Aalborg Boldspilklub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aalborg Boldspilklub has no effect on the direction of Spar Nord i.e., Spar Nord and Aalborg Boldspilklub go up and down completely randomly.
Pair Corralation between Spar Nord and Aalborg Boldspilklub
Assuming the 90 days trading horizon Spar Nord Bank is expected to generate 0.12 times more return on investment than Aalborg Boldspilklub. However, Spar Nord Bank is 8.64 times less risky than Aalborg Boldspilklub. It trades about 0.0 of its potential returns per unit of risk. Aalborg Boldspilklub AS is currently generating about -0.09 per unit of risk. If you would invest 20,700 in Spar Nord Bank on October 26, 2024 and sell it today you would earn a total of 0.00 from holding Spar Nord Bank or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Spar Nord Bank vs. Aalborg Boldspilklub AS
Performance |
| Timeline |
| Spar Nord Bank |
| Aalborg Boldspilklub |
Spar Nord and Aalborg Boldspilklub Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spar Nord and Aalborg Boldspilklub
The main advantage of trading using opposite Spar Nord and Aalborg Boldspilklub positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spar Nord position performs unexpectedly, Aalborg Boldspilklub 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 Aalborg Boldspilklub will offset losses from the drop in Aalborg Boldspilklub's long position.| Spar Nord vs. Sydbank AS | Spar Nord vs. Jyske Bank AS | Spar Nord vs. Alm Brand | Spar Nord vs. Nordea Bank Abp |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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