Correlation Between Jyske Bank and Halfords Group
Can any of the company-specific risk be diversified away by investing in both Jyske Bank and Halfords Group 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 Bank and Halfords Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jyske Bank AS and Halfords Group PLC, you can compare the effects of market volatilities on Jyske Bank and Halfords Group 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 Bank with a short position of Halfords Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jyske Bank and Halfords Group.
Diversification Opportunities for Jyske Bank and Halfords Group
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jyske and Halfords is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Jyske Bank AS and Halfords Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halfords Group PLC and Jyske Bank 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 Bank AS are associated (or correlated) with Halfords Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halfords Group PLC has no effect on the direction of Jyske Bank i.e., Jyske Bank and Halfords Group go up and down completely randomly.
Pair Corralation between Jyske Bank and Halfords Group
Assuming the 90 days trading horizon Jyske Bank AS is expected to generate 0.63 times more return on investment than Halfords Group. However, Jyske Bank AS is 1.6 times less risky than Halfords Group. It trades about 0.23 of its potential returns per unit of risk. Halfords Group PLC is currently generating about 0.09 per unit of risk. If you would invest 69,450 in Jyske Bank AS on September 10, 2025 and sell it today you would earn a total of 11,800 from holding Jyske Bank AS or generate 16.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jyske Bank AS vs. Halfords Group PLC
Performance |
| Timeline |
| Jyske Bank AS |
| Halfords Group PLC |
Jyske Bank and Halfords Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jyske Bank and Halfords Group
The main advantage of trading using opposite Jyske Bank and Halfords Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jyske Bank position performs unexpectedly, Halfords Group 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 Halfords Group will offset losses from the drop in Halfords Group's long position.| Jyske Bank vs. The Mercantile Investment | Jyske Bank vs. Atalaya Mining | Jyske Bank vs. Jacquet Metal Service | Jyske Bank vs. Hochschild Mining plc |
| Halfords Group vs. Vitec Software Group | Halfords Group vs. Southern Copper Corp | Halfords Group vs. Logitech International SA | Halfords Group vs. Atalaya Mining |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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