Correlation Between Pandora AS and Djurslands Bank
Can any of the company-specific risk be diversified away by investing in both Pandora AS and Djurslands 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 Pandora AS and Djurslands Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pandora AS and Djurslands Bank, you can compare the effects of market volatilities on Pandora AS and Djurslands 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 Pandora AS with a short position of Djurslands Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pandora AS and Djurslands Bank.
Diversification Opportunities for Pandora AS and Djurslands Bank
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pandora and Djurslands is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Pandora AS and Djurslands Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Djurslands Bank and Pandora AS 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 Pandora AS are associated (or correlated) with Djurslands Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Djurslands Bank has no effect on the direction of Pandora AS i.e., Pandora AS and Djurslands Bank go up and down completely randomly.
Pair Corralation between Pandora AS and Djurslands Bank
Assuming the 90 days trading horizon Pandora AS is expected to generate 1.69 times more return on investment than Djurslands Bank. However, Pandora AS is 1.69 times more volatile than Djurslands Bank. It trades about 0.11 of its potential returns per unit of risk. Djurslands Bank is currently generating about 0.09 per unit of risk. If you would invest 47,998 in Pandora AS on September 7, 2024 and sell it today you would earn a total of 69,752 from holding Pandora AS or generate 145.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Pandora AS vs. Djurslands Bank
Performance |
Timeline |
Pandora AS |
Djurslands Bank |
Pandora AS and Djurslands Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pandora AS and Djurslands Bank
The main advantage of trading using opposite Pandora AS and Djurslands Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pandora AS position performs unexpectedly, Djurslands 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 Djurslands Bank will offset losses from the drop in Djurslands Bank's long position.Pandora AS vs. Ralph Lauren Corp | Pandora AS vs. Tapestry | Pandora AS vs. PVH Corp | Pandora AS vs. Levi Strauss Co |
Djurslands Bank vs. Bavarian Nordic | Djurslands Bank vs. DSV Panalpina AS | Djurslands Bank vs. Vestas Wind Systems | Djurslands Bank vs. Ambu AS |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Transaction History View history of all your transactions and understand their impact on performance | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |