Correlation Between Tryg AS and Fynske Bank
Can any of the company-specific risk be diversified away by investing in both Tryg AS and Fynske 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 Tryg AS and Fynske Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tryg AS and Fynske Bank AS, you can compare the effects of market volatilities on Tryg AS and Fynske 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 Tryg AS with a short position of Fynske Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tryg AS and Fynske Bank.
Diversification Opportunities for Tryg AS and Fynske Bank
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tryg and Fynske is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Tryg AS and Fynske Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fynske Bank AS and Tryg AS 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 Tryg AS are associated (or correlated) with Fynske Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fynske Bank AS has no effect on the direction of Tryg AS i.e., Tryg AS and Fynske Bank go up and down completely randomly.
Pair Corralation between Tryg AS and Fynske Bank
Assuming the 90 days trading horizon Tryg AS is expected to generate 0.35 times more return on investment than Fynske Bank. However, Tryg AS is 2.85 times less risky than Fynske Bank. It trades about 0.29 of its potential returns per unit of risk. Fynske Bank AS is currently generating about 0.02 per unit of risk. If you would invest 14,620 in Tryg AS on November 27, 2024 and sell it today you would earn a total of 680.00 from holding Tryg AS or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tryg AS vs. Fynske Bank AS
Performance |
| Timeline |
| Tryg AS |
| Fynske Bank AS |
Tryg AS and Fynske Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tryg AS and Fynske Bank
The main advantage of trading using opposite Tryg AS and Fynske Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tryg AS position performs unexpectedly, Fynske 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 Fynske Bank will offset losses from the drop in Fynske Bank's long position.The idea behind Tryg AS and Fynske Bank AS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Fynske Bank vs. Skjern Bank AS | Fynske Bank vs. Djurslands Bank | Fynske Bank vs. Sparekassen Sjaelland Fyn AS | Fynske Bank vs. Groenlandsbanken 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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