Correlation Between Advanced Medical and Sydbank
Can any of the company-specific risk be diversified away by investing in both Advanced Medical and Sydbank 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 Advanced Medical and Sydbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advanced Medical Solutions and Sydbank, you can compare the effects of market volatilities on Advanced Medical and Sydbank 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 Advanced Medical with a short position of Sydbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Medical and Sydbank.
Diversification Opportunities for Advanced Medical and Sydbank
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Advanced and Sydbank is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Medical Solutions and Sydbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sydbank and Advanced Medical 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 Advanced Medical Solutions are associated (or correlated) with Sydbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sydbank has no effect on the direction of Advanced Medical i.e., Advanced Medical and Sydbank go up and down completely randomly.
Pair Corralation between Advanced Medical and Sydbank
Assuming the 90 days trading horizon Advanced Medical Solutions is expected to under-perform the Sydbank. But the stock apears to be less risky and, when comparing its historical volatility, Advanced Medical Solutions is 1.66 times less risky than Sydbank. The stock trades about -0.29 of its potential returns per unit of risk. The Sydbank is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 37,560 in Sydbank on October 12, 2024 and sell it today you would lose (550.00) from holding Sydbank or give up 1.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Medical Solutions vs. Sydbank
Performance |
| Timeline |
| Advanced Medical Sol |
| Sydbank |
Advanced Medical and Sydbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Medical and Sydbank
The main advantage of trading using opposite Advanced Medical and Sydbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Medical position performs unexpectedly, Sydbank 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 Sydbank will offset losses from the drop in Sydbank's long position.| Advanced Medical vs. Alliance Data Systems | Advanced Medical vs. Fidelity National Information | Advanced Medical vs. UNIQA Insurance Group | Advanced Medical vs. Extra Space Storage |
| Sydbank vs. Fresenius Medical Care | Sydbank vs. Creo Medical Group | Sydbank vs. Medical Properties Trust | Sydbank vs. Advanced Medical Solutions |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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