Correlation Between BankInvest Udenlandske and BankInvest Optima

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

By analyzing existing cross correlation between BankInvest Udenlandske Obligationer and BankInvest Optima 10, you can compare the effects of market volatilities on BankInvest Udenlandske and BankInvest Optima 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 Udenlandske with a short position of BankInvest Optima. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankInvest Udenlandske and BankInvest Optima.

Diversification Opportunities for BankInvest Udenlandske and BankInvest Optima

0.0

Correlation Coefficient

BankInvest Udenlandske  BankInvest Optima

Pay attention - limited upside

The 3 months correlation between BankInvest and BankInvest is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BankInvest Udenlandske Obligat and BankInvest Optima 10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInvest Optima and BankInvest Udenlandske 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 Udenlandske Obligationer are associated (or correlated) with BankInvest Optima. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInvest Optima has no effect on the direction of BankInvest Udenlandske i.e., BankInvest Udenlandske and BankInvest Optima go up and down completely randomly.

Pair Corralation between BankInvest Udenlandske and BankInvest Optima

If you would invest (100.00) in BankInvest Optima 10 on October 10, 2024 and sell it today you would earn a total of  100.00  from holding BankInvest Optima 10 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

BankInvest Udenlandske Obligat  vs.  BankInvest Optima 10

BankInvest Udenlandske

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BankInvest Udenlandske Obligationer has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong basic indicators, BankInvest Udenlandske is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

BankInvest Optima

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BankInvest Optima 10 has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong basic indicators, BankInvest Optima is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with BankInvest Udenlandske and BankInvest Optima

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

The idea behind BankInvest Udenlandske Obligationer and BankInvest Optima 10 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.