Correlation Between Dataproces Group and Jyske Invest

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

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

Diversification Opportunities for Dataproces Group and Jyske Invest

-0.26

Correlation Coefficient

Dataproces Group  Jyske Invest

Very good diversification

The 3 months correlation between Dataproces and Jyske is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Dataproces Group AS and Jyske Invest Nye in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jyske Invest Nye and Dataproces Group 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 Dataproces Group 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 Nye has no effect on the direction of Dataproces Group i.e., Dataproces Group and Jyske Invest go up and down completely randomly.

Pair Corralation between Dataproces Group and Jyske Invest

If you would invest  520.00  in Dataproces Group AS on October 10, 2024 and sell it today you would earn a total of  45.00  from holding Dataproces Group AS or generate 8.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Dataproces Group AS  vs.  Jyske Invest Nye

Dataproces Group

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Dataproces Group AS are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Dataproces Group may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Jyske Invest Nye

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jyske Invest Nye has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward indicators, Jyske Invest is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Dataproces Group and Jyske Invest

The main advantage of trading using opposite Dataproces Group and Jyske Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dataproces Group 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 Dataproces Group AS and Jyske Invest Nye 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.