Correlation Between BankInvest Hjt and Cessatech

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

By analyzing existing cross correlation between BankInvest Hjt Udbytte and Cessatech AS, you can compare the effects of market volatilities on BankInvest Hjt and Cessatech 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 BankInvest Hjt with a short position of Cessatech. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankInvest Hjt and Cessatech.

Diversification Opportunities for BankInvest Hjt and Cessatech

0.07

Correlation Coefficient

BankInvest Hjt  Cessatech

Significant diversification

The 3 months correlation between BankInvest and Cessatech is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding BankInvest Hjt Udbytte and Cessatech AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cessatech AS and BankInvest Hjt 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 BankInvest Hjt Udbytte are associated (or correlated) with Cessatech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cessatech AS has no effect on the direction of BankInvest Hjt i.e., BankInvest Hjt and Cessatech go up and down completely randomly.

Pair Corralation between BankInvest Hjt and Cessatech

Assuming the 90 days trading horizon BankInvest Hjt Udbytte is expected to generate 0.19 times more return on investment than Cessatech. However, BankInvest Hjt Udbytte is 5.18 times less risky than Cessatech. It trades about 0.05 of its potential returns per unit of risk. Cessatech AS is currently generating about -0.09 per unit of risk. If you would invest  14,470  in BankInvest Hjt Udbytte on December 25, 2024 and sell it today you would earn a total of  330.00  from holding BankInvest Hjt Udbytte or generate 2.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

BankInvest Hjt Udbytte  vs.  Cessatech AS

BankInvest Hjt Udbytte

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in BankInvest Hjt Udbytte are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, BankInvest Hjt is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Cessatech AS

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cessatech AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with BankInvest Hjt and Cessatech

The main advantage of trading using opposite BankInvest Hjt and Cessatech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankInvest Hjt position performs unexpectedly, Cessatech 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 Cessatech will offset losses from the drop in Cessatech's long position.

The idea behind BankInvest Hjt Udbytte and Cessatech 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.

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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.