Correlation Between Vestjysk Bank and Jyske Invest
Can any of the company-specific risk be diversified away by investing in both Vestjysk Bank 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 Vestjysk Bank and Jyske Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vestjysk Bank AS and Jyske Invest Lange, you can compare the effects of market volatilities on Vestjysk Bank 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 Vestjysk Bank with a short position of Jyske Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vestjysk Bank and Jyske Invest.
Diversification Opportunities for Vestjysk Bank and Jyske Invest
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vestjysk and Jyske is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Vestjysk Bank AS 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 Vestjysk 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 Vestjysk Bank AS 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 Vestjysk Bank i.e., Vestjysk Bank and Jyske Invest go up and down completely randomly.
Pair Corralation between Vestjysk Bank and Jyske Invest
Assuming the 90 days trading horizon Vestjysk Bank AS is expected to under-perform the Jyske Invest. In addition to that, Vestjysk Bank is 6.1 times more volatile than Jyske Invest Lange. It trades about -0.18 of its total potential returns per unit of risk. Jyske Invest Lange is currently generating about 0.12 per unit of volatility. If you would invest 9,228 in Jyske Invest Lange on August 29, 2024 and sell it today you would earn a total of 32.00 from holding Jyske Invest Lange or generate 0.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vestjysk Bank AS vs. Jyske Invest Lange
Performance |
| Timeline |
| Vestjysk Bank AS |
| Jyske Invest Lange |
Vestjysk Bank and Jyske Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vestjysk Bank and Jyske Invest
The main advantage of trading using opposite Vestjysk Bank and Jyske Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vestjysk Bank 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.| Vestjysk Bank vs. Sydbank AS | Vestjysk Bank vs. Jyske Bank AS | Vestjysk Bank vs. Alm Brand | Vestjysk Bank vs. Nordea Bank Abp |
| Jyske Invest vs. Moens Bank AS | Jyske Invest vs. Vestjysk Bank AS | Jyske Invest vs. Carnegie Wealth Management | Jyske Invest vs. TROPHY GAMES Development |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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