Correlation Between Sydbank and CATLIN GROUP
Can any of the company-specific risk be diversified away by investing in both Sydbank and CATLIN GROUP 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 CATLIN GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sydbank and CATLIN GROUP , you can compare the effects of market volatilities on Sydbank and CATLIN GROUP 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 CATLIN GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sydbank and CATLIN GROUP.
Diversification Opportunities for Sydbank and CATLIN GROUP
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sydbank and CATLIN is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Sydbank and CATLIN GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CATLIN GROUP 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 CATLIN GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CATLIN GROUP has no effect on the direction of Sydbank i.e., Sydbank and CATLIN GROUP go up and down completely randomly.
Pair Corralation between Sydbank and CATLIN GROUP
Assuming the 90 days trading horizon Sydbank is expected to generate 3.07 times more return on investment than CATLIN GROUP. However, Sydbank is 3.07 times more volatile than CATLIN GROUP . It trades about 0.11 of its potential returns per unit of risk. CATLIN GROUP is currently generating about -0.29 per unit of risk. If you would invest 36,960 in Sydbank on October 22, 2024 and sell it today you would earn a total of 1,170 from holding Sydbank or generate 3.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Sydbank vs. CATLIN GROUP
Performance |
| Timeline |
| Sydbank |
| CATLIN GROUP |
Sydbank and CATLIN GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sydbank and CATLIN GROUP
The main advantage of trading using opposite Sydbank and CATLIN GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sydbank position performs unexpectedly, CATLIN GROUP 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 CATLIN GROUP will offset losses from the drop in CATLIN GROUP's long position.| Sydbank vs. Alien Metals | Sydbank vs. Europa Metals | Sydbank vs. American Homes 4 | Sydbank vs. Adriatic Metals |
| CATLIN GROUP vs. JB Hunt Transport | CATLIN GROUP vs. Sydbank | CATLIN GROUP vs. Norman Broadbent Plc | CATLIN GROUP vs. Erste Group Bank |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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