Correlation Between BankInvest Optima and DSV Panalpina

By analyzing existing cross correlation between BankInvest Optima 75 and DSV Panalpina AS you can compare the effects of market volatilities on BankInvest Optima and DSV Panalpina 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 Optima with a short position of DSV Panalpina. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankInvest Optima and DSV Panalpina.

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Can any of the company-specific risk be diversified away by investing in both BankInvest Optima and DSV Panalpina at the same time? Although using correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combing BankInvest Optima and DSV Panalpina into the same portfolio which is an essential part of fundamental portfolio management process.

Diversification Opportunities for BankInvest Optima and DSV Panalpina

-0.05
Correlation
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Good diversification

The 3 months correlation between BankInvest and DSV Panalpina is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding BankInvest Optima 75 Akk KL and DSV Panalpina AS in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on DSV Panalpina AS and BankInvest Optima 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 Optima 75 are associated (or correlated) with DSV Panalpina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DSV Panalpina AS has no effect on the direction of BankInvest Optima i.e. BankInvest Optima and DSV Panalpina go up and down completely randomly.

Pair Corralation between BankInvest Optima and DSV Panalpina

Assuming 30 trading days horizon, BankInvest Optima 75 is expected to generate 0.44 times more return on investment than DSV Panalpina. However, BankInvest Optima 75 is 2.29 times less risky than DSV Panalpina. It trades about 0.65 of its potential returns per unit of risk. DSV Panalpina AS is currently generating about 0.03 per unit of risk. If you would invest  14,240  in BankInvest Optima 75 on April 30, 2020 and sell it today you would earn a total of  1,940  from holding BankInvest Optima 75 or generate 13.62% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy18.87%
ValuesDaily Returns

BankInvest Optima 75 Akk KL  vs.  DSV Panalpina AS

 Performance (%) 
      Timeline 
BankInvest Optima 
00

BankInvest Optima Risk-Adjusted Performance

Over the last 30 days BankInvest Optima 75 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat weak basic indicators, BankInvest Optima sustained solid returns over the last few months and may actually be approaching a breakup point.
DSV Panalpina AS 
22

DSV Panalpina Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in DSV Panalpina AS are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days. Allthough quite conflicting forward indicators, DSV Panalpina may actually be approaching a critical reversion point that can send shares even higher in June 2020.

BankInvest Optima and DSV Panalpina Volatility Contrast

 Predicted Return Density 
      Returns 

DSV Panalpina AS

Pair trading matchups for DSV Panalpina

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