Correlation Between Carlsberg and Jyske Invest

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

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

Diversification Opportunities for Carlsberg and Jyske Invest

-0.65

Correlation Coefficient

Carlsberg  Jyske Invest

Excellent diversification

The 3 months correlation between Carlsberg and Jyske is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Carlsberg AS and Jyske Invest Virksomhedsobliga in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jyske Invest Virksom and Carlsberg 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 Carlsberg AS are associated (or correlated) with Jyske Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jyske Invest Virksom has no effect on the direction of Carlsberg i.e., Carlsberg and Jyske Invest go up and down completely randomly.

Pair Corralation between Carlsberg and Jyske Invest

Assuming the 90 days trading horizon Carlsberg AS is expected to under-perform the Jyske Invest. In addition to that, Carlsberg is 4.59 times more volatile than Jyske Invest Virksomhedsobligationer. It trades about -0.02 of its total potential returns per unit of risk. Jyske Invest Virksomhedsobligationer is currently generating about 0.03 per unit of volatility. If you would invest  9,142  in Jyske Invest Virksomhedsobligationer on September 22, 2024 and sell it today you would earn a total of  279.00  from holding Jyske Invest Virksomhedsobligationer or generate 3.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	49.9%
Values	Daily Returns

Carlsberg AS  vs.  Jyske Invest Virksomhedsobliga

Carlsberg AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Carlsberg AS 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 basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Jyske Invest Virksom

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Jyske Invest Virksomhedsobligationer are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Jyske Invest is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Carlsberg and Jyske Invest

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

The idea behind Carlsberg AS and Jyske Invest Virksomhedsobligationer 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.