Correlation Between Sydbank and JLEN Environmental
Can any of the company-specific risk be diversified away by investing in both Sydbank and JLEN Environmental 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 JLEN Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sydbank and JLEN Environmental Assets, you can compare the effects of market volatilities on Sydbank and JLEN Environmental 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 JLEN Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sydbank and JLEN Environmental.
Diversification Opportunities for Sydbank and JLEN Environmental
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sydbank and JLEN is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Sydbank and JLEN Environmental Assets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JLEN Environmental Assets 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 JLEN Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JLEN Environmental Assets has no effect on the direction of Sydbank i.e., Sydbank and JLEN Environmental go up and down completely randomly.
Pair Corralation between Sydbank and JLEN Environmental
Assuming the 90 days trading horizon Sydbank is expected to generate 1.5 times more return on investment than JLEN Environmental. However, Sydbank is 1.5 times more volatile than JLEN Environmental Assets. It trades about 0.0 of its potential returns per unit of risk. JLEN Environmental Assets is currently generating about -0.12 per unit of risk. If you would invest 38,060 in Sydbank on October 17, 2024 and sell it today you would lose (260.00) from holding Sydbank or give up 0.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Sydbank vs. JLEN Environmental Assets
Performance |
| Timeline |
| Sydbank |
| JLEN Environmental Assets |
Sydbank and JLEN Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sydbank and JLEN Environmental
The main advantage of trading using opposite Sydbank and JLEN Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sydbank position performs unexpectedly, JLEN Environmental 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 JLEN Environmental will offset losses from the drop in JLEN Environmental's long position.| Sydbank vs. Cellnex Telecom SA | Sydbank vs. URU Metals | Sydbank vs. Gamma Communications PLC | Sydbank vs. Universal Music Group |
| JLEN Environmental vs. Universal Display Corp | JLEN Environmental vs. Blackstone Loan Financing | JLEN Environmental vs. Metro Bank PLC | JLEN Environmental vs. Sydbank |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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