Correlation Between Jyske Invest and PF Atlantic

Can any of the company-specific risk be diversified away by investing in both Jyske Invest and PF Atlantic 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 PF Atlantic 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 PF Atlantic Petroleum, you can compare the effects of market volatilities on Jyske Invest and PF Atlantic 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 PF Atlantic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jyske Invest and PF Atlantic.

Diversification Opportunities for Jyske Invest and PF Atlantic

-0.49

Correlation Coefficient

Jyske Invest  PF Atlantic

Very good diversification

The 3 months correlation between Jyske and ATLA-DKK is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Jyske Invest Nye and PF Atlantic Petroleum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PF Atlantic Petroleum 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 PF Atlantic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PF Atlantic Petroleum has no effect on the direction of Jyske Invest i.e., Jyske Invest and PF Atlantic go up and down completely randomly.

Pair Corralation between Jyske Invest and PF Atlantic

Assuming the 90 days trading horizon Jyske Invest Nye is expected to generate 0.31 times more return on investment than PF Atlantic. However, Jyske Invest Nye is 3.2 times less risky than PF Atlantic. It trades about 0.1 of its potential returns per unit of risk. PF Atlantic Petroleum is currently generating about -0.1 per unit of risk. If you would invest  26,230  in Jyske Invest Nye on September 3, 2024 and sell it today you would earn a total of  1,720  from holding Jyske Invest Nye or generate 6.56% return on investment over 90 days.

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

Jyske Invest Nye  vs.  PF Atlantic Petroleum

Jyske Invest Nye

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jyske Invest Nye are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Jyske Invest may actually be approaching a critical reversion point that can send shares even higher in January 2025.

PF Atlantic Petroleum

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PF Atlantic Petroleum has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Jyske Invest and PF Atlantic

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

The idea behind Jyske Invest Nye and PF Atlantic Petroleum 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.