Two Equities Correlation Analysis

This model provides you with a quick lookup of cross correlation between two equities. Please specify two instruments to run the correlation.

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

Diversification Opportunities for Danske Invest and DOW

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Correlation
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DOW

Pay attention - limited upside

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

If you would invest  2,385,102  in DOW on May 6, 2020 and sell it today you would earn a total of  310,339  from holding DOW or generate 13.01% return on investment over 30 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy1.59%
ValuesDaily Returns

Danske Invest Fjernsten  vs.  DOW

 Performance (%) 
      Timeline 
Check out your portfolio center. Please also try Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.


 
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