Correlation Between Jyske Invest and BankInvest Virksomhedsoblig

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

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

Diversification Opportunities for Jyske Invest and BankInvest Virksomhedsoblig

0.5

Correlation Coefficient

Jyske Invest  BankInvest Virksomhedsoblig

Very weak diversification

The 3 months correlation between Jyske and BankInvest is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Jyske Invest Nye and BankInvest Virksomhedsobliga in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInvest Virksomhedsoblig and Jyske 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 Jyske Invest Nye are associated (or correlated) with BankInvest Virksomhedsoblig. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInvest Virksomhedsoblig has no effect on the direction of Jyske Invest i.e., Jyske Invest and BankInvest Virksomhedsoblig go up and down completely randomly.

Pair Corralation between Jyske Invest and BankInvest Virksomhedsoblig

Assuming the 90 days trading horizon Jyske Invest is expected to generate 1.74 times less return on investment than BankInvest Virksomhedsoblig. In addition to that, Jyske Invest is 2.31 times more volatile than BankInvest Virksomhedsobligationer. It trades about 0.03 of its total potential returns per unit of risk. BankInvest Virksomhedsobligationer is currently generating about 0.13 per unit of volatility. If you would invest  14,125  in BankInvest Virksomhedsobligationer on October 12, 2024 and sell it today you would earn a total of  615.00  from holding BankInvest Virksomhedsobligationer or generate 4.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

Jyske Invest Nye  vs.  BankInvest Virksomhedsobliga

Jyske Invest Nye

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Jyske Invest Nye are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Jyske Invest is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

BankInvest Virksomhedsoblig

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in BankInvest Virksomhedsobligationer are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. Despite nearly stable technical and fundamental indicators, BankInvest Virksomhedsoblig is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Jyske Invest and BankInvest Virksomhedsoblig

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

The idea behind Jyske Invest Nye and BankInvest 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.

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.