Correlation Between Maj Invest and Bankinvest USA

Can any of the company-specific risk be diversified away by investing in both Maj Invest and Bankinvest USA 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 Maj Invest and Bankinvest USA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Maj Invest Value and Bankinvest USA, you can compare the effects of market volatilities on Maj Invest and Bankinvest USA 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 Maj Invest with a short position of Bankinvest USA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maj Invest and Bankinvest USA.

Diversification Opportunities for Maj Invest and Bankinvest USA

0.0

Correlation Coefficient

Maj Invest  Bankinvest USA

Pay attention - limited upside

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

Pair Corralation between Maj Invest and Bankinvest USA

If you would invest  18,346  in Maj Invest Value on September 14, 2024 and sell it today you would earn a total of  1,244  from holding Maj Invest Value or generate 6.78% return on investment over 90 days.

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

Maj Invest Value  vs.  Bankinvest USA

Maj Invest Value

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Maj Invest Value are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat weak forward-looking indicators, Maj Invest may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Bankinvest USA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bankinvest USA has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong basic indicators, Bankinvest USA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Maj Invest and Bankinvest USA

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

The idea behind Maj Invest Value and Bankinvest USA 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.