Correlation Between Sydbank and Grand Vision
Can any of the company-specific risk be diversified away by investing in both Sydbank and Grand Vision 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 Grand Vision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sydbank and Grand Vision Media, you can compare the effects of market volatilities on Sydbank and Grand Vision 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 Grand Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sydbank and Grand Vision.
Diversification Opportunities for Sydbank and Grand Vision
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sydbank and Grand is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sydbank and Grand Vision Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Vision Media 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 Grand Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Vision Media has no effect on the direction of Sydbank i.e., Sydbank and Grand Vision go up and down completely randomly.
Pair Corralation between Sydbank and Grand Vision
Assuming the 90 days trading horizon Sydbank is expected to generate 0.54 times more return on investment than Grand Vision. However, Sydbank is 1.86 times less risky than Grand Vision. It trades about 0.04 of its potential returns per unit of risk. Grand Vision Media is currently generating about -0.03 per unit of risk. If you would invest 27,785 in Sydbank on October 11, 2024 and sell it today you would earn a total of 9,125 from holding Sydbank or generate 32.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sydbank vs. Grand Vision Media
Performance |
| Timeline |
| Sydbank |
| Grand Vision Media |
Sydbank and Grand Vision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sydbank and Grand Vision
The main advantage of trading using opposite Sydbank and Grand Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sydbank position performs unexpectedly, Grand Vision 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 Grand Vision will offset losses from the drop in Grand Vision's long position.| Sydbank vs. CAP LEASE AVIATION | Sydbank vs. Sligro Food Group | Sydbank vs. Leroy Seafood Group | Sydbank vs. Roebuck Food Group |
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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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