Correlation Between BankIn Bredygt and Jyske Bank

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

By analyzing existing cross correlation between BankIn Bredygt Klimaakt and Jyske Bank AS, you can compare the effects of market volatilities on BankIn Bredygt and Jyske Bank 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 BankIn Bredygt with a short position of Jyske Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankIn Bredygt and Jyske Bank.

Diversification Opportunities for BankIn Bredygt and Jyske Bank

-0.75

Correlation Coefficient

BankIn Bredygt  Jyske Bank

Pay attention - limited upside

The 3 months correlation between BankIn and Jyske is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding BankIn Bredygt Klimaakt and Jyske Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jyske Bank AS and BankIn Bredygt 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 BankIn Bredygt Klimaakt are associated (or correlated) with Jyske Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jyske Bank AS has no effect on the direction of BankIn Bredygt i.e., BankIn Bredygt and Jyske Bank go up and down completely randomly.

Pair Corralation between BankIn Bredygt and Jyske Bank

Assuming the 90 days trading horizon BankIn Bredygt Klimaakt is expected to under-perform the Jyske Bank. But the stock apears to be less risky and, when comparing its historical volatility, BankIn Bredygt Klimaakt is 1.75 times less risky than Jyske Bank. The stock trades about -0.3 of its potential returns per unit of risk. The Jyske Bank AS is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest  53,250  in Jyske Bank AS on December 1, 2024 and sell it today you would earn a total of  4,750  from holding Jyske Bank AS or generate 8.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	63.64%
Values	Daily Returns

BankIn Bredygt Klimaakt  vs.  Jyske Bank AS

BankIn Bredygt Klimaakt

Risk-Adjusted Performance

Very Weak

Over the last 90 days BankIn Bredygt Klimaakt has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Jyske Bank AS

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Jyske Bank AS are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Jyske Bank displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BankIn Bredygt and Jyske Bank

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

The idea behind BankIn Bredygt Klimaakt and Jyske Bank 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.