Correlation Between BankInv Kort and Absalon Invest

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

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

Diversification Opportunities for BankInv Kort and Absalon Invest

0.0

Correlation Coefficient

BankInv Kort  Absalon Invest

Pay attention - limited upside

The 3 months correlation between BankInv and Absalon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BankInv Kort HY and Absalon Invest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Absalon Invest and BankInv Kort 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 BankInv Kort HY are associated (or correlated) with Absalon Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Absalon Invest has no effect on the direction of BankInv Kort i.e., BankInv Kort and Absalon Invest go up and down completely randomly.

Pair Corralation between BankInv Kort and Absalon Invest

If you would invest  10,170  in BankInv Kort HY on October 10, 2024 and sell it today you would earn a total of  175.00  from holding BankInv Kort HY or generate 1.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

BankInv Kort HY  vs.  Absalon Invest

BankInv Kort HY

Risk-Adjusted Performance

3 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in BankInv Kort HY are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, BankInv Kort is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Absalon Invest

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Absalon Invest has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, Absalon Invest is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with BankInv Kort and Absalon Invest

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

The idea behind BankInv Kort HY and Absalon Invest 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.