Correlation Between Jyske Bank and C WorldWide

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

Diversification Opportunities for Jyske Bank and C WorldWide

0.0

Correlation Coefficient

Jyske Bank  C WorldWide

Pay attention - limited upside

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

Pair Corralation between Jyske Bank and C WorldWide

If you would invest  49,460  in Jyske Bank AS on October 6, 2024 and sell it today you would earn a total of  1,740  from holding Jyske Bank AS or generate 3.52% 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.  C WorldWide Stabile

Jyske Bank AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jyske Bank AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Jyske Bank is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

C WorldWide Stabile

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days C WorldWide Stabile has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward indicators, C WorldWide is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Jyske Bank and C WorldWide

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

The idea behind Jyske Bank AS and C WorldWide Stabile 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..