Correlation Between OKB and Maj Invest

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

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

Diversification Opportunities for OKB and Maj Invest

0.0

Correlation Coefficient

OKB  Maj Invest

Pay attention - limited upside

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

Pair Corralation between OKB and Maj Invest

If you would invest  5,090  in OKB on January 25, 2024 and sell it today you would earn a total of  401.00  from holding OKB or generate 7.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.33%
Values	Daily Returns

OKB  vs.  Maj Invest Danske

OKB

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in OKB are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental drivers, OKB may actually be approaching a critical reversion point that can send shares even higher in May 2024.

Maj Invest Danske

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Maj Invest Danske are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong forward-looking signals, Maj Invest is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with OKB and Maj Invest

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

The idea behind OKB and Maj Invest 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.

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.