Correlation Between Jyske Invest and Lollands Bank

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Jyske Invest and Lollands Bank 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 Lollands Bank 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 Lollands Bank, you can compare the effects of market volatilities on Jyske Invest and Lollands Bank 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 Lollands Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jyske Invest and Lollands Bank.

Diversification Opportunities for Jyske Invest and Lollands Bank

0.34
  Correlation Coefficient

Weak diversification

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

Pair Corralation between Jyske Invest and Lollands Bank

Assuming the 90 days trading horizon Jyske Invest is expected to generate 1.36 times less return on investment than Lollands Bank. But when comparing it to its historical volatility, Jyske Invest Virksomhedsobligationer is 3.45 times less risky than Lollands Bank. It trades about 0.03 of its potential returns per unit of risk. Lollands Bank is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  57,103  in Lollands Bank on October 4, 2024 and sell it today you would earn a total of  1,397  from holding Lollands Bank or generate 2.45% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy51.22%
ValuesDaily Returns

Jyske Invest Virksomhedsobliga  vs.  Lollands Bank

 Performance 
       Timeline  
Jyske Invest Virksom 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Jyske Invest Virksomhedsobligationer are ranked lower than 2 (%) 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 recent stock price mess, may contribute to short-term losses for the institutional investors.
Lollands Bank 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Lollands Bank are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Lollands Bank may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Jyske Invest and Lollands Bank Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Jyske Invest and Lollands Bank

The main advantage of trading using opposite Jyske Invest and Lollands Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jyske Invest position performs unexpectedly, Lollands Bank 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 Lollands Bank will offset losses from the drop in Lollands Bank's long position.
The idea behind Jyske Invest Virksomhedsobligationer and Lollands Bank 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

Other Complementary Tools

Stocks Directory
Find actively traded stocks across global markets
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device