Correlation Between BankInv Kort and Handelsinvest Danske

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both BankInv Kort and Handelsinvest Danske 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 Handelsinvest Danske 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 Handelsinvest Danske Obligationer, you can compare the effects of market volatilities on BankInv Kort and Handelsinvest Danske 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 Handelsinvest Danske. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankInv Kort and Handelsinvest Danske.

Diversification Opportunities for BankInv Kort and Handelsinvest Danske

0.29
  Correlation Coefficient

Modest diversification

The 3 months correlation between BankInv and Handelsinvest is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding BankInv Kort HY and Handelsinvest Danske Obligatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Handelsinvest Danske 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 Handelsinvest Danske. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Handelsinvest Danske has no effect on the direction of BankInv Kort i.e., BankInv Kort and Handelsinvest Danske go up and down completely randomly.

Pair Corralation between BankInv Kort and Handelsinvest Danske

Assuming the 90 days trading horizon BankInv Kort is expected to generate 2.27 times less return on investment than Handelsinvest Danske. In addition to that, BankInv Kort is 1.69 times more volatile than Handelsinvest Danske Obligationer. It trades about 0.05 of its total potential returns per unit of risk. Handelsinvest Danske Obligationer is currently generating about 0.18 per unit of volatility. If you would invest  9,743  in Handelsinvest Danske Obligationer on October 10, 2024 and sell it today you would earn a total of  110.00  from holding Handelsinvest Danske Obligationer or generate 1.13% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

BankInv Kort HY  vs.  Handelsinvest Danske Obligatio

 Performance 
       Timeline  
BankInv Kort HY 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
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 recent stock price disarray, may contribute to short-term losses for the investors.
Handelsinvest Danske 

Risk-Adjusted Performance

14 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Handelsinvest Danske Obligationer are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong forward-looking signals, Handelsinvest Danske is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

BankInv Kort and Handelsinvest Danske Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with BankInv Kort and Handelsinvest Danske

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

Other Complementary Tools

Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Money Managers
Screen money managers from public funds and ETFs managed around the world