Correlation Between Jyske Bank and BankInvest Globale

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

By analyzing existing cross correlation between Jyske Bank AS and BankInvest Globale Obl, you can compare the effects of market volatilities on Jyske Bank and BankInvest Globale 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 Bank with a short position of BankInvest Globale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jyske Bank and BankInvest Globale.

Diversification Opportunities for Jyske Bank and BankInvest Globale

0.0

Correlation Coefficient

Jyske Bank  BankInvest Globale

Pay attention - limited upside

The 3 months correlation between Jyske and BankInvest is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jyske Bank AS and BankInvest Globale Obl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInvest Globale Obl and Jyske Bank 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 Bank AS are associated (or correlated) with BankInvest Globale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInvest Globale Obl has no effect on the direction of Jyske Bank i.e., Jyske Bank and BankInvest Globale go up and down completely randomly.

Pair Corralation between Jyske Bank and BankInvest Globale

If you would invest  50,900  in Jyske Bank AS on December 25, 2024 and sell it today you would earn a total of  8,300  from holding Jyske Bank AS or generate 16.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Jyske Bank AS  vs.  BankInvest Globale Obl

Jyske Bank AS

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jyske Bank AS are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Jyske Bank displayed solid returns over the last few months and may actually be approaching a breakup point.

BankInvest Globale Obl

Risk-Adjusted Performance

Very Weak

Over the last 90 days BankInvest Globale Obl has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, BankInvest Globale is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Jyske Bank and BankInvest Globale

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

The idea behind Jyske Bank AS and BankInvest Globale Obl 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.