Correlation Between Alm Brand and Jyske Invest

Can any of the company-specific risk be diversified away by investing in both Alm Brand 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 Alm Brand and Jyske Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Alm Brand Invest and Jyske Invest Kinesiske, you can compare the effects of market volatilities on Alm Brand 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 Alm Brand with a short position of Jyske Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alm Brand and Jyske Invest.

Diversification Opportunities for Alm Brand and Jyske Invest

0.0

Correlation Coefficient

Alm Brand  Jyske Invest

Pay attention - limited upside

The 3 months correlation between Alm and Jyske is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alm Brand Invest and Jyske Invest Kinesiske in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jyske Invest Kinesiske and Alm Brand 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 Alm Brand Invest 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 Kinesiske has no effect on the direction of Alm Brand i.e., Alm Brand and Jyske Invest go up and down completely randomly.

Pair Corralation between Alm Brand and Jyske Invest

If you would invest (100.00) in Jyske Invest Kinesiske on December 28, 2024 and sell it today you would earn a total of  100.00  from holding Jyske Invest Kinesiske or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Alm Brand Invest  vs.  Jyske Invest Kinesiske

Alm Brand Invest

Risk-Adjusted Performance

Very Weak

Over the last 90 days Alm Brand Invest has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Alm Brand is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Jyske Invest Kinesiske

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jyske Invest Kinesiske has generated negative risk-adjusted returns adding no value to fund investors. Despite quite persistent essential indicators, Jyske Invest is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Alm Brand and Jyske Invest

The main advantage of trading using opposite Alm Brand and Jyske Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alm Brand 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.

The idea behind Alm Brand Invest and Jyske Invest Kinesiske 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.