Correlation Between BankInvest Optima and DSV Panalpina

Can any of the company-specific risk be diversified away by investing in both BankInvest Optima and DSV Panalpina 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 BankInvest Optima and DSV Panalpina into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BankInvest Optima 30 and DSV Panalpina AS, you can compare the effects of market volatilities on BankInvest Optima and DSV Panalpina 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 BankInvest Optima with a short position of DSV Panalpina. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankInvest Optima and DSV Panalpina.

Diversification Opportunities for BankInvest Optima and DSV Panalpina

-0.5

Correlation Coefficient

BankInvest Optima  DSV Panalpina

Very good diversification

The 3 months correlation between BankInvest and DSV is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding BankInvest Optima 30 and DSV Panalpina AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DSV Panalpina AS and BankInvest Optima 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 BankInvest Optima 30 are associated (or correlated) with DSV Panalpina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DSV Panalpina AS has no effect on the direction of BankInvest Optima i.e., BankInvest Optima and DSV Panalpina go up and down completely randomly.

Pair Corralation between BankInvest Optima and DSV Panalpina

If you would invest  110,427  in DSV Panalpina AS on January 26, 2024 and sell it today you would lose (8,477) from holding DSV Panalpina AS or give up 7.68% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	0.0%
Values	Daily Returns

BankInvest Optima 30  vs.  DSV Panalpina AS

BankInvest Optima

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days BankInvest Optima 30 has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, BankInvest Optima is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

DSV Panalpina AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days DSV Panalpina AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in May 2024. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with BankInvest Optima and DSV Panalpina

The main advantage of trading using opposite BankInvest Optima and DSV Panalpina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankInvest Optima position performs unexpectedly, DSV Panalpina 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 DSV Panalpina will offset losses from the drop in DSV Panalpina's long position.

The idea behind BankInvest Optima 30 and DSV Panalpina 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.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.