Correlation Between Laan Spar and Jyske Bank
Can any of the company-specific risk be diversified away by investing in both Laan Spar 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 Laan Spar and Jyske Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Laan Spar Bank and Jyske Bank AS, you can compare the effects of market volatilities on Laan Spar 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 Laan Spar with a short position of Jyske Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Laan Spar and Jyske Bank.
Diversification Opportunities for Laan Spar and Jyske Bank
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Laan and Jyske is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Laan Spar Bank 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 Laan Spar 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 Laan Spar Bank 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 Laan Spar i.e., Laan Spar and Jyske Bank go up and down completely randomly.
Pair Corralation between Laan Spar and Jyske Bank
Assuming the 90 days trading horizon Laan Spar Bank is expected to generate 0.37 times more return on investment than Jyske Bank. However, Laan Spar Bank is 2.72 times less risky than Jyske Bank. It trades about 0.25 of its potential returns per unit of risk. Jyske Bank AS is currently generating about -0.04 per unit of risk. If you would invest 69,500 in Laan Spar Bank on January 26, 2024 and sell it today you would earn a total of 2,000 from holding Laan Spar Bank or generate 2.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Laan Spar Bank vs. Jyske Bank AS
Performance |
Timeline |
Laan Spar Bank |
Jyske Bank AS |
Laan Spar and Jyske Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Laan Spar and Jyske Bank
The main advantage of trading using opposite Laan Spar and Jyske Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Laan Spar 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.Laan Spar vs. Vestjysk Bank AS | Laan Spar vs. Skjern Bank AS | Laan Spar vs. Groenlandsbanken AS | Laan Spar vs. Kreditbanken AS |
Jyske Bank vs. Strategic Investments AS | Jyske Bank vs. Scandinavian Medical Solutions | Jyske Bank vs. Scape Technologies AS | Jyske Bank vs. Nordinvestments 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |