Correlation Between Bankinvest Danske and Apple
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By analyzing existing cross correlation between Bankinvest Danske and Apple Inc, you can compare the effects of market volatilities on Bankinvest Danske and Apple 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 Bankinvest Danske with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bankinvest Danske and Apple.
Diversification Opportunities for Bankinvest Danske and Apple
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bankinvest and Apple is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Bankinvest - Danske and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Bankinvest Danske 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 Bankinvest Danske are associated (or correlated) with Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Bankinvest Danske i.e., Bankinvest Danske and Apple go up and down completely randomly.
Pair Corralation between Bankinvest Danske and Apple
Assuming the 90 days trading horizon Bankinvest Danske is expected to generate 0.45 times more return on investment than Apple. However, Bankinvest Danske is 2.23 times less risky than Apple. It trades about 0.23 of its potential returns per unit of risk. Apple Inc is currently generating about -0.18 per unit of risk. If you would invest 21,070 in Bankinvest Danske on December 29, 2023 and sell it today you would earn a total of 1,180 from holding Bankinvest Danske or generate 5.6% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 97.67% |
Values | Daily Returns |
Bankinvest - Danske vs. Apple Inc
Performance |
Timeline |
Bankinvest - Danske |
Apple Inc |
Bankinvest Danske and Apple Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bankinvest Danske and Apple
The main advantage of trading using opposite Bankinvest Danske and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bankinvest Danske position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.The idea behind Bankinvest Danske and Apple Inc 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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