Correlation Between Sydbank and Public Storage
Can any of the company-specific risk be diversified away by investing in both Sydbank and Public Storage 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 Public Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sydbank and Public Storage, you can compare the effects of market volatilities on Sydbank and Public Storage 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 Public Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sydbank and Public Storage.
Diversification Opportunities for Sydbank and Public Storage
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sydbank and Public is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Sydbank and Public Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Storage 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 Public Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Storage has no effect on the direction of Sydbank i.e., Sydbank and Public Storage go up and down completely randomly.
Pair Corralation between Sydbank and Public Storage
Assuming the 90 days trading horizon Sydbank is expected to generate 1.08 times more return on investment than Public Storage. However, Sydbank is 1.08 times more volatile than Public Storage. It trades about 0.1 of its potential returns per unit of risk. Public Storage is currently generating about 0.04 per unit of risk. If you would invest 26,759 in Sydbank on September 14, 2024 and sell it today you would earn a total of 11,081 from holding Sydbank or generate 41.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Sydbank vs. Public Storage
Performance |
| Timeline |
| Sydbank |
| Public Storage |
Sydbank and Public Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sydbank and Public Storage
The main advantage of trading using opposite Sydbank and Public Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sydbank position performs unexpectedly, Public Storage 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 Public Storage will offset losses from the drop in Public Storage's long position.| Sydbank vs. Samsung Electronics Co | Sydbank vs. Samsung Electronics Co | Sydbank vs. Hyundai Motor | Sydbank vs. Reliance Industries Ltd |
| Public Storage vs. Hilton Food Group | Public Storage vs. Ebro Foods | Public Storage vs. Grieg Seafood | Public Storage vs. Edita Food Industries |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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