Correlation Between Jyske Invest and BankInvest Emerging

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

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

Diversification Opportunities for Jyske Invest and BankInvest Emerging

0.34

Correlation Coefficient

Jyske Invest  BankInvest Emerging

Weak diversification

The 3 months correlation between Jyske and BankInvest is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Jyske Invest Virksomhedsobliga and BankInvest Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInvest Emerging 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 Virksomhedsobligationer are associated (or correlated) with BankInvest Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInvest Emerging has no effect on the direction of Jyske Invest i.e., Jyske Invest and BankInvest Emerging go up and down completely randomly.

Pair Corralation between Jyske Invest and BankInvest Emerging

Assuming the 90 days trading horizon Jyske Invest Virksomhedsobligationer is expected to generate 0.5 times more return on investment than BankInvest Emerging. However, Jyske Invest Virksomhedsobligationer is 2.01 times less risky than BankInvest Emerging. It trades about 0.04 of its potential returns per unit of risk. BankInvest Emerging is currently generating about -0.01 per unit of risk. If you would invest  9,350  in Jyske Invest Virksomhedsobligationer on October 11, 2024 and sell it today you would earn a total of  68.00  from holding Jyske Invest Virksomhedsobligationer or generate 0.73% return on investment over 90 days.

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

Jyske Invest Virksomhedsobliga  vs.  BankInvest Emerging

Jyske Invest Virksom

Risk-Adjusted Performance

3 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Jyske Invest Virksomhedsobligationer are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Jyske Invest is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

BankInvest Emerging

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BankInvest Emerging has generated negative risk-adjusted returns adding no value to fund investors. Despite quite persistent basic indicators, BankInvest Emerging is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Jyske Invest and BankInvest Emerging

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

The idea behind Jyske Invest Virksomhedsobligationer and BankInvest Emerging 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.