Correlation Between Fynske Bank and Danske Invest

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Can any of the company-specific risk be diversified away by investing in both Fynske Bank and Danske 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 Fynske Bank and Danske Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fynske Bank AS and Danske Invest Select, you can compare the effects of market volatilities on Fynske Bank and Danske 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 Fynske Bank with a short position of Danske Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fynske Bank and Danske Invest.

Diversification Opportunities for Fynske Bank and Danske Invest

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  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Fynske and Danske is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fynske Bank AS and Danske Invest Select in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Danske Invest Select and Fynske Bank 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 Fynske Bank AS are associated (or correlated) with Danske Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Danske Invest Select has no effect on the direction of Fynske Bank i.e., Fynske Bank and Danske Invest go up and down completely randomly.

Pair Corralation between Fynske Bank and Danske Invest

If you would invest  14,800  in Fynske Bank AS on October 25, 2024 and sell it today you would earn a total of  400.00  from holding Fynske Bank AS or generate 2.7% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy1.69%
ValuesDaily Returns

Fynske Bank AS  vs.  Danske Invest Select

 Performance 
       Timeline  
Fynske Bank AS 

Risk-Adjusted Performance

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Weak
 
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Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Fynske Bank AS are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Fynske Bank is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.
Danske Invest Select 

Risk-Adjusted Performance

0 of 100

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

Fynske Bank and Danske Invest Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Fynske Bank and Danske Invest

The main advantage of trading using opposite Fynske Bank and Danske Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fynske Bank position performs unexpectedly, Danske 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 Danske Invest will offset losses from the drop in Danske Invest's long position.
The idea behind Fynske Bank AS and Danske Invest Select 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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