Correlation Between Swedbank and Jyske Bank
Can any of the company-specific risk be diversified away by investing in both Swedbank and Jyske Bank 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 Swedbank and Jyske Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swedbank AB and Jyske Bank AS, you can compare the effects of market volatilities on Swedbank and Jyske Bank 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 Swedbank with a short position of Jyske Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swedbank and Jyske Bank.
Diversification Opportunities for Swedbank and Jyske Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Swedbank and Jyske is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Swedbank AB and Jyske Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jyske Bank AS and Swedbank 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 Swedbank AB are associated (or correlated) with Jyske Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jyske Bank AS has no effect on the direction of Swedbank i.e., Swedbank and Jyske Bank go up and down completely randomly.
Pair Corralation between Swedbank and Jyske Bank
Assuming the 90 days horizon Swedbank is expected to generate 1.48 times less return on investment than Jyske Bank. In addition to that, Swedbank is 1.15 times more volatile than Jyske Bank AS. It trades about 0.03 of its total potential returns per unit of risk. Jyske Bank AS is currently generating about 0.06 per unit of volatility. If you would invest 968.00 in Jyske Bank AS on November 2, 2024 and sell it today you would earn a total of 461.00 from holding Jyske Bank AS or generate 47.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swedbank AB vs. Jyske Bank AS
Performance |
| Timeline |
| Swedbank AB |
| Jyske Bank AS |
Swedbank and Jyske Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swedbank and Jyske Bank
The main advantage of trading using opposite Swedbank and Jyske Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swedbank position performs unexpectedly, Jyske Bank 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 Bank will offset losses from the drop in Jyske Bank's long position.| Swedbank vs. United Overseas Bank | Swedbank vs. KBC Groep NV | Swedbank vs. Jyske Bank AS | Swedbank vs. Israel Discount Bank |
| Jyske Bank vs. Baraboo Bancorporation | Jyske Bank vs. Schweizerische Nationalbank | Jyske Bank vs. Danske Bank AS | Jyske Bank vs. Absa Group Limited |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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