Correlation Between Fundamental Invest and BankInvest Hojrentelande

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

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

Diversification Opportunities for Fundamental Invest and BankInvest Hojrentelande

-0.82

Correlation Coefficient

Fundamental Invest  BankInvest Hojrentelande

Pay attention - limited upside

The 3 months correlation between Fundamental and BankInvest is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Fundamental Invest Stock and BankInvest Hojrentelande in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInvest Hojrentelande and Fundamental Invest 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 Fundamental Invest Stock are associated (or correlated) with BankInvest Hojrentelande. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInvest Hojrentelande has no effect on the direction of Fundamental Invest i.e., Fundamental Invest and BankInvest Hojrentelande go up and down completely randomly.

Pair Corralation between Fundamental Invest and BankInvest Hojrentelande

Assuming the 90 days trading horizon Fundamental Invest Stock is expected to under-perform the BankInvest Hojrentelande. In addition to that, Fundamental Invest is 6.02 times more volatile than BankInvest Hojrentelande. It trades about -0.12 of its total potential returns per unit of risk. BankInvest Hojrentelande is currently generating about 0.11 per unit of volatility. If you would invest  5,248  in BankInvest Hojrentelande on December 29, 2024 and sell it today you would earn a total of  108.00  from holding BankInvest Hojrentelande or generate 2.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Fundamental Invest Stock  vs.  BankInvest Hojrentelande

Fundamental Invest Stock

Risk-Adjusted Performance

Very Weak

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

BankInvest Hojrentelande

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BankInvest Hojrentelande are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong primary indicators, BankInvest Hojrentelande is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Fundamental Invest and BankInvest Hojrentelande

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

The idea behind Fundamental Invest Stock and BankInvest Hojrentelande 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.