Correlation Between AIB Group and Jyske Bank

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

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

Diversification Opportunities for AIB Group and Jyske Bank

0.0

Correlation Coefficient

AIB Group  Jyske Bank

Pay attention - limited upside

The 3 months correlation between AIB and Jyske is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AIB Group PLC and Jyske Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jyske Bank AS and AIB 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 AIB Group PLC are associated (or correlated) with Jyske Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jyske Bank AS has no effect on the direction of AIB Group i.e., AIB Group and Jyske Bank go up and down completely randomly.

Pair Corralation between AIB Group and Jyske Bank

If you would invest  1,361  in Jyske Bank AS on May 6, 2025 and sell it today you would earn a total of  68.00  from holding Jyske Bank AS or generate 5.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

AIB Group PLC  vs.  Jyske Bank AS

AIB Group PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days AIB Group PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, AIB Group is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Jyske Bank AS

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jyske Bank AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward-looking signals, Jyske Bank is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with AIB Group and Jyske Bank

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

The idea behind AIB Group PLC and Jyske Bank 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.