Correlation Between Dataproces Group and BankIn Bredygt

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

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

Diversification Opportunities for Dataproces Group and BankIn Bredygt

0.58

Correlation Coefficient

Dataproces Group  BankIn Bredygt

Very weak diversification

The 3 months correlation between Dataproces and BankIn is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Dataproces Group AS and BankIn Bredygt Klimaakt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankIn Bredygt Klimaakt and Dataproces Group 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 Dataproces Group AS are associated (or correlated) with BankIn Bredygt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankIn Bredygt Klimaakt has no effect on the direction of Dataproces Group i.e., Dataproces Group and BankIn Bredygt go up and down completely randomly.

Pair Corralation between Dataproces Group and BankIn Bredygt

Assuming the 90 days trading horizon Dataproces Group AS is expected to under-perform the BankIn Bredygt. In addition to that, Dataproces Group is 2.09 times more volatile than BankIn Bredygt Klimaakt. It trades about -0.08 of its total potential returns per unit of risk. BankIn Bredygt Klimaakt is currently generating about 0.16 per unit of volatility. If you would invest  9,064  in BankIn Bredygt Klimaakt on April 24, 2025 and sell it today you would earn a total of  676.00  from holding BankIn Bredygt Klimaakt or generate 7.46% return on investment over 90 days.

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

Dataproces Group AS  vs.  BankIn Bredygt Klimaakt

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.

BankIn Bredygt Klimaakt

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in BankIn Bredygt Klimaakt are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady forward indicators, BankIn Bredygt sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Dataproces Group and BankIn Bredygt

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

The idea behind Dataproces Group AS and BankIn Bredygt Klimaakt 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.