Correlation Between Sydbank and TR Property
Can any of the company-specific risk be diversified away by investing in both Sydbank and TR Property 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 TR Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sydbank and TR Property Investment, you can compare the effects of market volatilities on Sydbank and TR Property 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 TR Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sydbank and TR Property.
Diversification Opportunities for Sydbank and TR Property
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sydbank and TRY is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Sydbank and TR Property Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TR Property Investment 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 TR Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TR Property Investment has no effect on the direction of Sydbank i.e., Sydbank and TR Property go up and down completely randomly.
Pair Corralation between Sydbank and TR Property
Assuming the 90 days trading horizon Sydbank is expected to generate 0.79 times more return on investment than TR Property. However, Sydbank is 1.26 times less risky than TR Property. It trades about -0.03 of its potential returns per unit of risk. TR Property Investment is currently generating about -0.09 per unit of risk. If you would invest 37,980 in Sydbank on October 29, 2024 and sell it today you would lose (400.00) from holding Sydbank or give up 1.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sydbank vs. TR Property Investment
Performance |
| Timeline |
| Sydbank |
| TR Property Investment |
Sydbank and TR Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sydbank and TR Property
The main advantage of trading using opposite Sydbank and TR Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sydbank position performs unexpectedly, TR Property 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 TR Property will offset losses from the drop in TR Property's long position.| Sydbank vs. Take Two Interactive Software | Sydbank vs. Abingdon Health Plc | Sydbank vs. Cardinal Health | Sydbank vs. Naturhouse Health SA |
| TR Property vs. Cognizant Technology Solutions | TR Property vs. Auction Technology Group | TR Property vs. Spotify Technology SA | TR Property vs. Sabien Technology Group |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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