Correlation Between Sydbank and Ametek
Can any of the company-specific risk be diversified away by investing in both Sydbank and Ametek 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 Ametek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sydbank and Ametek Inc, you can compare the effects of market volatilities on Sydbank and Ametek 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 Ametek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sydbank and Ametek.
Diversification Opportunities for Sydbank and Ametek
Poor diversification
The 3 months correlation between Sydbank and Ametek is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Sydbank and Ametek Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ametek Inc 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 Ametek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ametek Inc has no effect on the direction of Sydbank i.e., Sydbank and Ametek go up and down completely randomly.
Pair Corralation between Sydbank and Ametek
Assuming the 90 days trading horizon Sydbank is expected to generate 0.84 times more return on investment than Ametek. However, Sydbank is 1.19 times less risky than Ametek. It trades about 0.16 of its potential returns per unit of risk. Ametek Inc is currently generating about 0.13 per unit of risk. If you would invest 32,910 in Sydbank on September 12, 2024 and sell it today you would earn a total of 4,650 from holding Sydbank or generate 14.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sydbank vs. Ametek Inc
Performance |
| Timeline |
| Sydbank |
| Ametek Inc |
Sydbank and Ametek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sydbank and Ametek
The main advantage of trading using opposite Sydbank and Ametek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sydbank position performs unexpectedly, Ametek 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 Ametek will offset losses from the drop in Ametek's long position.| Sydbank vs. Fair Oaks Income | Sydbank vs. Tatton Asset Management | Sydbank vs. Delta Air Lines | Sydbank vs. Endeavour Mining Corp |
| Ametek vs. mobilezone holding AG | Ametek vs. Silvercorp Metals | Ametek vs. Aeorema Communications Plc | Ametek vs. Bisichi Mining PLC |
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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