Correlation Between Jyske Invest and ISS AS

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

Diversification Opportunities for Jyske Invest and ISS AS

-0.32

Correlation Coefficient

Jyske Invest  ISS AS

Very good diversification

The 3 months correlation between Jyske and ISS is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Jyske Invest Virksomhedsobliga and ISS AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ISS AS 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 ISS AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ISS AS has no effect on the direction of Jyske Invest i.e., Jyske Invest and ISS AS go up and down completely randomly.

Pair Corralation between Jyske Invest and ISS AS

Assuming the 90 days trading horizon Jyske Invest Virksomhedsobligationer is expected to generate 0.22 times more return on investment than ISS AS. However, Jyske Invest Virksomhedsobligationer is 4.63 times less risky than ISS AS. It trades about 0.02 of its potential returns per unit of risk. ISS AS is currently generating about -0.1 per unit of risk. If you would invest  9,370  in Jyske Invest Virksomhedsobligationer on October 22, 2024 and sell it today you would earn a total of  30.00  from holding Jyske Invest Virksomhedsobligationer or generate 0.32% return on investment over 90 days.

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

Jyske Invest Virksomhedsobliga  vs.  ISS AS

Jyske Invest Virksom

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Jyske Invest Virksomhedsobligationer are ranked lower than 1 (%) 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.

ISS AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ISS AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Jyske Invest and ISS AS

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

The idea behind Jyske Invest Virksomhedsobligationer and ISS AS 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.