Correlation Between Cessatech and Jyske Invest

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

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

Diversification Opportunities for Cessatech and Jyske Invest

0.01

Correlation Coefficient

Cessatech  Jyske Invest

Significant diversification

The 3 months correlation between Cessatech and Jyske is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Cessatech 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 Cessatech 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 Cessatech 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 Cessatech i.e., Cessatech and Jyske Invest go up and down completely randomly.

Pair Corralation between Cessatech and Jyske Invest

Assuming the 90 days trading horizon Cessatech AS is expected to under-perform the Jyske Invest. In addition to that, Cessatech is 9.05 times more volatile than Jyske Invest Virksomhedsobligationer. It trades about -0.1 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 October 6, 2024 and sell it today you would earn a total of  298.00  from holding Jyske Invest Virksomhedsobligationer or generate 3.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	16.14%
Values	Daily Returns

Cessatech AS  vs.  Jyske Invest Virksomhedsobliga

Cessatech AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cessatech AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

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 recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Cessatech and Jyske Invest

The main advantage of trading using opposite Cessatech and Jyske Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cessatech 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 Cessatech 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.