Correlation Between DKIEUHUAKLDKK and DKINYM

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

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

Diversification Opportunities for DKIEUHUAKLDKK and DKINYM

0.01

Correlation Coefficient

DKIEUHUAKLDKK  DKINYM

Significant diversification

The 3 months correlation between DKIEUHUAKLDKK and DKINYM is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Investeringsforeningen Danske and Investeringsforeningen Danske in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investeringsforeningen and DKIEUHUAKLDKK 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 Investeringsforeningen Danske Invest are associated (or correlated) with DKINYM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investeringsforeningen has no effect on the direction of DKIEUHUAKLDKK i.e., DKIEUHUAKLDKK and DKINYM go up and down completely randomly.

Pair Corralation between DKIEUHUAKLDKK and DKINYM

Assuming the 90 days trading horizon Investeringsforeningen Danske Invest is expected to under-perform the DKINYM. But the fund apears to be less risky and, when comparing its historical volatility, Investeringsforeningen Danske Invest is 1.35 times less risky than DKINYM. The fund trades about 0.0 of its potential returns per unit of risk. The Investeringsforeningen Danske Invest is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  19,046  in Investeringsforeningen Danske Invest on September 12, 2024 and sell it today you would earn a total of  1,454  from holding Investeringsforeningen Danske Invest or generate 7.63% return on investment over 90 days.

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

Investeringsforeningen Danske   vs.  Investeringsforeningen Danske

Investeringsforeningen

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Investeringsforeningen Danske Invest has generated negative risk-adjusted returns adding no value to fund investors. In spite of comparatively stable essential indicators, DKIEUHUAKLDKK is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Investeringsforeningen

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Investeringsforeningen Danske Invest are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat weak forward indicators, DKINYM may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with DKIEUHUAKLDKK and DKINYM

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

The idea behind Investeringsforeningen Danske Invest and Investeringsforeningen Danske Invest 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.