Correlation Between Gyldendal and Handelsinvest Danske

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

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

Diversification Opportunities for Gyldendal and Handelsinvest Danske

-0.39

Correlation Coefficient

Gyldendal  Handelsinvest Danske

Very good diversification

The 3 months correlation between Gyldendal and Handelsinvest is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Gyldendal AS and Handelsinvest Danske Obligatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Handelsinvest Danske and Gyldendal 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 Gyldendal AS are associated (or correlated) with Handelsinvest Danske. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Handelsinvest Danske has no effect on the direction of Gyldendal i.e., Gyldendal and Handelsinvest Danske go up and down completely randomly.

Pair Corralation between Gyldendal and Handelsinvest Danske

Assuming the 90 days trading horizon Gyldendal AS is expected to under-perform the Handelsinvest Danske. In addition to that, Gyldendal is 39.17 times more volatile than Handelsinvest Danske Obligationer. It trades about -0.05 of its total potential returns per unit of risk. Handelsinvest Danske Obligationer is currently generating about 0.18 per unit of volatility. If you would invest  9,738  in Handelsinvest Danske Obligationer on October 4, 2024 and sell it today you would earn a total of  103.00  from holding Handelsinvest Danske Obligationer or generate 1.06% return on investment over 90 days.

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

Gyldendal AS  vs.  Handelsinvest Danske Obligatio

Gyldendal AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gyldendal AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's essential indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Handelsinvest Danske

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Handelsinvest Danske Obligationer are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong forward-looking signals, Handelsinvest Danske is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Gyldendal and Handelsinvest Danske

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

The idea behind Gyldendal AS and Handelsinvest Danske Obligationer 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.