Correlation Between BankIn Bredygt and Dataproces Group

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

By analyzing existing cross correlation between BankIn Bredygt Klimaakt and Dataproces Group AS, you can compare the effects of market volatilities on BankIn Bredygt and Dataproces 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 BankIn Bredygt with a short position of Dataproces Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankIn Bredygt and Dataproces Group.

Diversification Opportunities for BankIn Bredygt and Dataproces Group

0.39

Correlation Coefficient

BankIn Bredygt  Dataproces Group

Weak diversification

The 3 months correlation between BankIn and Dataproces is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding BankIn Bredygt Klimaakt and Dataproces Group AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dataproces Group and BankIn Bredygt 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 BankIn Bredygt Klimaakt are associated (or correlated) with Dataproces Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dataproces Group has no effect on the direction of BankIn Bredygt i.e., BankIn Bredygt and Dataproces Group go up and down completely randomly.

Pair Corralation between BankIn Bredygt and Dataproces Group

Assuming the 90 days trading horizon BankIn Bredygt Klimaakt is expected to generate 0.49 times more return on investment than Dataproces Group. However, BankIn Bredygt Klimaakt is 2.03 times less risky than Dataproces Group. It trades about 0.21 of its potential returns per unit of risk. Dataproces Group AS is currently generating about -0.07 per unit of risk. If you would invest  8,858  in BankIn Bredygt Klimaakt on April 23, 2025 and sell it today you would earn a total of  886.00  from holding BankIn Bredygt Klimaakt or generate 10.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	50.0%
Values	Daily Returns

BankIn Bredygt Klimaakt  vs.  Dataproces Group AS

BankIn Bredygt Klimaakt

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in BankIn Bredygt Klimaakt are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak forward indicators, BankIn Bredygt sustained solid returns over the last few months and may actually be approaching a breakup point.

Dataproces Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dataproces Group AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in August 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with BankIn Bredygt and Dataproces Group

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

The idea behind BankIn Bredygt Klimaakt and Dataproces Group 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.