Correlation Between Beeks Trading and Sydbank
Can any of the company-specific risk be diversified away by investing in both Beeks Trading 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 Beeks Trading and Sydbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beeks Trading and Sydbank, you can compare the effects of market volatilities on Beeks Trading 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 Beeks Trading with a short position of Sydbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beeks Trading and Sydbank.
Diversification Opportunities for Beeks Trading and Sydbank
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beeks and Sydbank is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Beeks Trading and Sydbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sydbank and Beeks Trading 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 Beeks Trading 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 Beeks Trading i.e., Beeks Trading and Sydbank go up and down completely randomly.
Pair Corralation between Beeks Trading and Sydbank
Assuming the 90 days trading horizon Beeks Trading is expected to generate 2.06 times more return on investment than Sydbank. However, Beeks Trading is 2.06 times more volatile than Sydbank. It trades about 0.29 of its potential returns per unit of risk. Sydbank is currently generating about 0.32 per unit of risk. If you would invest 25,400 in Beeks Trading on September 13, 2024 and sell it today you would earn a total of 4,100 from holding Beeks Trading or generate 16.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beeks Trading vs. Sydbank
Performance |
| Timeline |
| Beeks Trading |
| Sydbank |
Beeks Trading and Sydbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beeks Trading and Sydbank
The main advantage of trading using opposite Beeks Trading and Sydbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beeks Trading 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.| Beeks Trading vs. Gaztransport et Technigaz | Beeks Trading vs. Ryanair Holdings plc | Beeks Trading vs. Broadridge Financial Solutions | Beeks Trading vs. GlobalData PLC |
| Sydbank vs. Fair Oaks Income | Sydbank vs. Tatton Asset Management | Sydbank vs. Delta Air Lines | Sydbank vs. Endeavour Mining Corp |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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