Correlation Between Bankinvest Kreditobligation and Bankinvest Europa

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

By analyzing existing cross correlation between Bankinvest Kreditobligationer and Bankinvest Europa, you can compare the effects of market volatilities on Bankinvest Kreditobligation and Bankinvest Europa 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 Kreditobligation with a short position of Bankinvest Europa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bankinvest Kreditobligation and Bankinvest Europa.

Diversification Opportunities for Bankinvest Kreditobligation and Bankinvest Europa

0.0

Correlation Coefficient

Bankinvest Kreditobligation  Bankinvest Europa

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 Kreditobligationer and Bankinvest Europa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bankinvest Europa and Bankinvest Kreditobligation 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 Kreditobligationer are associated (or correlated) with Bankinvest Europa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bankinvest Europa has no effect on the direction of Bankinvest Kreditobligation i.e., Bankinvest Kreditobligation and Bankinvest Europa go up and down completely randomly.

Pair Corralation between Bankinvest Kreditobligation and Bankinvest Europa

If you would invest (100.00) in Bankinvest Europa on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Bankinvest Europa 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 Kreditobligationer  vs.  Bankinvest Europa

Bankinvest Kreditobligation

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bankinvest Kreditobligationer has generated negative risk-adjusted returns adding no value to fund investors. Despite nearly stable forward indicators, Bankinvest Kreditobligation is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Bankinvest Europa

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Bankinvest Kreditobligation and Bankinvest Europa

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

The idea behind Bankinvest Kreditobligationer and Bankinvest Europa 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.