Correlation Between Jyske Invest and Sparinvest Growth

Can any of the company-specific risk be diversified away by investing in both Jyske Invest and Sparinvest Growth 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 Invest and Sparinvest Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jyske Invest Nye and Sparinvest Growth, you can compare the effects of market volatilities on Jyske Invest and Sparinvest Growth 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 Invest with a short position of Sparinvest Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jyske Invest and Sparinvest Growth.

Diversification Opportunities for Jyske Invest and Sparinvest Growth

0.11

Correlation Coefficient

Jyske Invest  Sparinvest Growth

Average diversification

The 3 months correlation between Jyske and Sparinvest is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Jyske Invest Nye and Sparinvest Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparinvest Growth and Jyske Invest 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 Invest Nye are associated (or correlated) with Sparinvest Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparinvest Growth has no effect on the direction of Jyske Invest i.e., Jyske Invest and Sparinvest Growth go up and down completely randomly.

Pair Corralation between Jyske Invest and Sparinvest Growth

Assuming the 90 days trading horizon Jyske Invest Nye is expected to generate 0.5 times more return on investment than Sparinvest Growth. However, Jyske Invest Nye is 1.98 times less risky than Sparinvest Growth. It trades about -0.09 of its potential returns per unit of risk. Sparinvest Growth is currently generating about -0.06 per unit of risk. If you would invest  11,385  in Jyske Invest Nye on February 2, 2024 and sell it today you would lose (170.00) from holding Jyske Invest Nye or give up 1.49% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Jyske Invest Nye  vs.  Sparinvest Growth

Jyske Invest Nye

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jyske Invest Nye has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Jyske Invest is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Sparinvest Growth

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sparinvest Growth are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. Despite quite persistent basic indicators, Sparinvest Growth is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Jyske Invest and Sparinvest Growth

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

The idea behind Jyske Invest Nye and Sparinvest Growth 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 Commodity Directory module to find actively traded commodities issued by global exchanges.