Correlation Between VMware and Jyske Bank
Can any of the company-specific risk be diversified away by investing in both VMware and Jyske Bank 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 VMware and Jyske Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VMware Inc and Jyske Bank AS, you can compare the effects of market volatilities on VMware and Jyske Bank 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 VMware with a short position of Jyske Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of VMware and Jyske Bank.
Diversification Opportunities for VMware and Jyske Bank
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between VMware and Jyske is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding VMware Inc and Jyske Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jyske Bank AS and VMware 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 VMware Inc are associated (or correlated) with Jyske Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jyske Bank AS has no effect on the direction of VMware i.e., VMware and Jyske Bank go up and down completely randomly.
Pair Corralation between VMware and Jyske Bank
If you would invest 56,266 in Jyske Bank AS on January 20, 2024 and sell it today you would earn a total of 1,084 from holding Jyske Bank AS or generate 1.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
VMware Inc vs. Jyske Bank AS
Performance |
| Timeline |
| VMware Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Jyske Bank AS |
VMware and Jyske Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VMware and Jyske Bank
The main advantage of trading using opposite VMware and Jyske Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VMware position performs unexpectedly, Jyske Bank 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 Jyske Bank will offset losses from the drop in Jyske Bank's long position.The idea behind VMware Inc and Jyske Bank AS 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.| Jyske Bank vs. Dataproces Group AS | Jyske Bank vs. Lollands Bank | Jyske Bank vs. Skjern Bank AS | Jyske Bank vs. Nordea Bank Abp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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