Correlation Between SEBinvest Danske and Netcompany Group
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By analyzing existing cross correlation between SEBinvest Danske and Netcompany Group AS, you can compare the effects of market volatilities on SEBinvest Danske and Netcompany Group 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 SEBinvest Danske with a short position of Netcompany Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEBinvest Danske and Netcompany Group.
Diversification Opportunities for SEBinvest Danske and Netcompany Group
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between SEBinvest and Netcompany is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding SEBinvest Danske and Netcompany Group AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Netcompany Group and SEBinvest 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 SEBinvest Danske are associated (or correlated) with Netcompany Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Netcompany Group has no effect on the direction of SEBinvest Danske i.e., SEBinvest Danske and Netcompany Group go up and down completely randomly.
Pair Corralation between SEBinvest Danske and Netcompany Group
Assuming the 90 days trading horizon SEBinvest Danske is expected to generate 0.42 times more return on investment than Netcompany Group. However, SEBinvest Danske is 2.4 times less risky than Netcompany Group. It trades about -0.13 of its potential returns per unit of risk. Netcompany Group AS is currently generating about -0.15 per unit of risk. If you would invest 15,395 in SEBinvest Danske on January 26, 2024 and sell it today you would lose (320.00) from holding SEBinvest Danske or give up 2.08% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
SEBinvest Danske vs. Netcompany Group AS
Performance |
Timeline |
SEBinvest Danske |
Netcompany Group |
SEBinvest Danske and Netcompany Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SEBinvest Danske and Netcompany Group
The main advantage of trading using opposite SEBinvest Danske and Netcompany Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEBinvest Danske position performs unexpectedly, Netcompany Group 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 Netcompany Group will offset losses from the drop in Netcompany Group's long position.SEBinvest Danske vs. Novo Nordisk AS | SEBinvest Danske vs. Nordea Bank Abp | SEBinvest Danske vs. DSV Panalpina AS | SEBinvest Danske vs. AP Mller |
Netcompany Group vs. Penneo AS | Netcompany Group vs. Bactiquant AS | Netcompany Group vs. cBrain AS | Netcompany Group vs. FOM Technologies 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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