Correlation Between Roku and Bankinvest Virksomhedsoblig
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By analyzing existing cross correlation between Roku Inc and Bankinvest Virksomhedsobligationer, you can compare the effects of market volatilities on Roku and Bankinvest Virksomhedsoblig 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 Roku with a short position of Bankinvest Virksomhedsoblig. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roku and Bankinvest Virksomhedsoblig.
Diversification Opportunities for Roku and Bankinvest Virksomhedsoblig
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Roku and Bankinvest is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Roku Inc and Bankinvest Virksomhedsobliga in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bankinvest Virksomhedsoblig and Roku 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 Roku Inc are associated (or correlated) with Bankinvest Virksomhedsoblig. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bankinvest Virksomhedsoblig has no effect on the direction of Roku i.e., Roku and Bankinvest Virksomhedsoblig go up and down completely randomly.
Pair Corralation between Roku and Bankinvest Virksomhedsoblig
Given the investment horizon of 90 days Roku Inc is expected to under-perform the Bankinvest Virksomhedsoblig. In addition to that, Roku is 8.22 times more volatile than Bankinvest Virksomhedsobligationer. It trades about -0.23 of its total potential returns per unit of risk. Bankinvest Virksomhedsobligationer is currently generating about -0.18 per unit of volatility. If you would invest 10,825 in Bankinvest Virksomhedsobligationer on January 24, 2024 and sell it today you would lose (85.00) from holding Bankinvest Virksomhedsobligationer or give up 0.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
Roku Inc vs. Bankinvest Virksomhedsobliga
Performance |
| Timeline |
| Roku Inc |
| Bankinvest Virksomhedsoblig |
Roku and Bankinvest Virksomhedsoblig Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Roku and Bankinvest Virksomhedsoblig
The main advantage of trading using opposite Roku and Bankinvest Virksomhedsoblig positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roku position performs unexpectedly, Bankinvest Virksomhedsoblig 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 Virksomhedsoblig will offset losses from the drop in Bankinvest Virksomhedsoblig's long position.The idea behind Roku Inc and Bankinvest Virksomhedsobligationer 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.| Bankinvest Virksomhedsoblig vs. Jyske Invest Nye | Bankinvest Virksomhedsoblig vs. Jyske Invest Nye | Bankinvest Virksomhedsoblig vs. Jyske Invest Hjt | Bankinvest Virksomhedsoblig vs. Jyske Invest Lange |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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