Correlation Between Sydbank and Qurate Retail
Can any of the company-specific risk be diversified away by investing in both Sydbank and Qurate Retail 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 Sydbank and Qurate Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sydbank and Qurate Retail Series, you can compare the effects of market volatilities on Sydbank and Qurate Retail 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 Sydbank with a short position of Qurate Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sydbank and Qurate Retail.
Diversification Opportunities for Sydbank and Qurate Retail
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sydbank and Qurate is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Sydbank and Qurate Retail Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qurate Retail Series and Sydbank 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 Sydbank are associated (or correlated) with Qurate Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qurate Retail Series has no effect on the direction of Sydbank i.e., Sydbank and Qurate Retail go up and down completely randomly.
Pair Corralation between Sydbank and Qurate Retail
Assuming the 90 days trading horizon Sydbank is expected to generate 0.44 times more return on investment than Qurate Retail. However, Sydbank is 2.27 times less risky than Qurate Retail. It trades about 0.11 of its potential returns per unit of risk. Qurate Retail Series is currently generating about -0.16 per unit of risk. If you would invest 32,900 in Sydbank on October 12, 2024 and sell it today you would earn a total of 4,110 from holding Sydbank or generate 12.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Sydbank vs. Qurate Retail Series
Performance |
| Timeline |
| Sydbank |
| Qurate Retail Series |
Sydbank and Qurate Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sydbank and Qurate Retail
The main advantage of trading using opposite Sydbank and Qurate Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sydbank position performs unexpectedly, Qurate Retail 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 Qurate Retail will offset losses from the drop in Qurate Retail's long position.| Sydbank vs. Fresenius Medical Care | Sydbank vs. Creo Medical Group | Sydbank vs. Medical Properties Trust | Sydbank vs. Advanced Medical Solutions |
| Qurate Retail vs. Global Net Lease | Qurate Retail vs. Lindsell Train Investment | Qurate Retail vs. New Residential Investment | Qurate Retail vs. EJF Investments |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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