Correlation Between Jyske Bank and ATT
Can any of the company-specific risk be diversified away by investing in both Jyske Bank and ATT 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 ATT 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 ATT Inc, you can compare the effects of market volatilities on Jyske Bank and ATT 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 ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jyske Bank and ATT.
Diversification Opportunities for Jyske Bank and ATT
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jyske and ATT is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Jyske Bank AS and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc 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 ATT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATT Inc has no effect on the direction of Jyske Bank i.e., Jyske Bank and ATT go up and down completely randomly.
Pair Corralation between Jyske Bank and ATT
Assuming the 90 days trading horizon Jyske Bank AS is expected to under-perform the ATT. In addition to that, Jyske Bank is 1.53 times more volatile than ATT Inc. It trades about -0.04 of its total potential returns per unit of risk. ATT Inc is currently generating about -0.02 per unit of volatility. If you would invest 1,690 in ATT Inc on January 26, 2024 and sell it today you would lose (9.00) from holding ATT Inc or give up 0.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Jyske Bank AS vs. ATT Inc
Performance |
| Timeline |
| Jyske Bank AS |
| ATT Inc |
Jyske Bank and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jyske Bank and ATT
The main advantage of trading using opposite Jyske Bank and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jyske Bank position performs unexpectedly, ATT 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 ATT will offset losses from the drop in ATT's long position.| Jyske Bank vs. Strategic Investments AS | Jyske Bank vs. Scandinavian Medical Solutions | Jyske Bank vs. Scape Technologies AS | Jyske Bank vs. Nordinvestments AS |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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