Correlation Between Jyske Invest and TROPHY GAMES

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

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

Diversification Opportunities for Jyske Invest and TROPHY GAMES

-0.63

Correlation Coefficient

Jyske Invest  TROPHY GAMES

Excellent diversification

The 3 months correlation between Jyske and TROPHY is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Jyske Invest Hjt and TROPHY GAMES Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TROPHY GAMES Development and Jyske 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 Jyske Invest Hjt are associated (or correlated) with TROPHY GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TROPHY GAMES Development has no effect on the direction of Jyske Invest i.e., Jyske Invest and TROPHY GAMES go up and down completely randomly.

Pair Corralation between Jyske Invest and TROPHY GAMES

Assuming the 90 days trading horizon Jyske Invest Hjt is expected to generate 0.08 times more return on investment than TROPHY GAMES. However, Jyske Invest Hjt is 13.01 times less risky than TROPHY GAMES. It trades about 0.18 of its potential returns per unit of risk. TROPHY GAMES Development is currently generating about -0.08 per unit of risk. If you would invest  10,093  in Jyske Invest Hjt on September 12, 2024 and sell it today you would earn a total of  232.00  from holding Jyske Invest Hjt or generate 2.3% return on investment over 90 days.

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

Jyske Invest Hjt  vs.  TROPHY GAMES Development

Jyske Invest Hjt

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jyske Invest Hjt are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong forward indicators, Jyske Invest is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

TROPHY GAMES Development

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TROPHY GAMES Development has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Jyske Invest and TROPHY GAMES

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

The idea behind Jyske Invest Hjt and TROPHY GAMES Development 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.