Correlation Between Baraboo Bancorporation and Jyske Bank

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

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

Diversification Opportunities for Baraboo Bancorporation and Jyske Bank

0.0

Correlation Coefficient

Baraboo Bancorporation  Jyske Bank

Pay attention - limited upside

The 3 months correlation between Baraboo and Jyske is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Baraboo Bancorp. 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 Baraboo Bancorporation 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 Baraboo Bancorporation 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 Baraboo Bancorporation i.e., Baraboo Bancorporation and Jyske Bank go up and down completely randomly.

Pair Corralation between Baraboo Bancorporation and Jyske Bank

If you would invest  297.00  in Baraboo Bancorporation on August 30, 2024 and sell it today you would earn a total of  33.00  from holding Baraboo Bancorporation or generate 11.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

Baraboo Bancorp.  vs.  Jyske Bank AS

Baraboo Bancorporation

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Baraboo Bancorporation are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile basic indicators, Baraboo Bancorporation may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Jyske Bank AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jyske Bank AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward-looking signals, Jyske Bank is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Baraboo Bancorporation and Jyske Bank

The main advantage of trading using opposite Baraboo Bancorporation and Jyske Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baraboo Bancorporation 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.

The idea behind Baraboo Bancorporation and Jyske Bank 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.