Correlation Between Jyske Invest and NKT AS

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

Diversification Opportunities for Jyske Invest and NKT AS

-0.82

Correlation Coefficient

Jyske Invest  NKT AS

Pay attention - limited upside

The 3 months correlation between Jyske and NKT is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Jyske Invest Virksomhedsobliga and NKT AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NKT 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 NKT AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NKT AS has no effect on the direction of Jyske Invest i.e., Jyske Invest and NKT AS go up and down completely randomly.

Pair Corralation between Jyske Invest and NKT AS

Assuming the 90 days trading horizon Jyske Invest Virksomhedsobligationer is expected to generate 0.15 times more return on investment than NKT AS. However, Jyske Invest Virksomhedsobligationer is 6.48 times less risky than NKT AS. It trades about 0.03 of its potential returns per unit of risk. NKT AS is currently generating about -0.17 per unit of risk. If you would invest  9,344  in Jyske Invest Virksomhedsobligationer on October 4, 2024 and sell it today you would earn a total of  52.00  from holding Jyske Invest Virksomhedsobligationer or generate 0.56% return on investment over 90 days.

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

Jyske Invest Virksomhedsobliga  vs.  NKT AS

Jyske Invest Virksom

Risk-Adjusted Performance

2 of 100

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.

NKT AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NKT AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Jyske Invest and NKT AS

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

The idea behind Jyske Invest Virksomhedsobligationer and NKT 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.

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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.