Correlation Between Maj Invest and Bankinvest Danske

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

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

Diversification Opportunities for Maj Invest and Bankinvest Danske

0.0

Correlation Coefficient

Maj Invest  Bankinvest Danske

Pay attention - limited upside

The 3 months correlation between Maj and Bankinvest is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Maj Invest Value and Bankinvest Danske in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bankinvest Danske and Maj 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 Maj Invest Value are associated (or correlated) with Bankinvest Danske. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bankinvest Danske has no effect on the direction of Maj Invest i.e., Maj Invest and Bankinvest Danske go up and down completely randomly.

Pair Corralation between Maj Invest and Bankinvest Danske

If you would invest  14,206  in Maj Invest Value on February 17, 2024 and sell it today you would earn a total of  3,674  from holding Maj Invest Value or generate 25.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Maj Invest Value  vs.  Bankinvest Danske

Maj Invest Value

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Maj Invest Value are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat weak basic indicators, Maj Invest may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Bankinvest Danske

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Bankinvest Danske has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong forward-looking signals, Bankinvest Danske is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Maj Invest and Bankinvest Danske

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

The idea behind Maj Invest Value and Bankinvest Danske 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.

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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.