Correlation Between Bankers Investment and Sydbank
Can any of the company-specific risk be diversified away by investing in both Bankers Investment 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 Bankers Investment and Sydbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bankers Investment Trust and Sydbank, you can compare the effects of market volatilities on Bankers Investment 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 Bankers Investment with a short position of Sydbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bankers Investment and Sydbank.
Diversification Opportunities for Bankers Investment and Sydbank
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bankers and Sydbank is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Bankers Investment Trust and Sydbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sydbank and Bankers Investment 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 Bankers Investment Trust 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 Bankers Investment i.e., Bankers Investment and Sydbank go up and down completely randomly.
Pair Corralation between Bankers Investment and Sydbank
Assuming the 90 days trading horizon Bankers Investment Trust is expected to generate 0.26 times more return on investment than Sydbank. However, Bankers Investment Trust is 3.82 times less risky than Sydbank. It trades about 0.11 of its potential returns per unit of risk. Sydbank is currently generating about -0.01 per unit of risk. If you would invest 11,580 in Bankers Investment Trust on October 11, 2024 and sell it today you would earn a total of 160.00 from holding Bankers Investment Trust or generate 1.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bankers Investment Trust vs. Sydbank
Performance |
| Timeline |
| Bankers Investment Trust |
| Sydbank |
Bankers Investment and Sydbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bankers Investment and Sydbank
The main advantage of trading using opposite Bankers Investment and Sydbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bankers Investment 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.| Bankers Investment vs. Atalaya Mining | Bankers Investment vs. Europa Metals | Bankers Investment vs. Wheaton Precious Metals | Bankers Investment vs. Adriatic Metals |
| Sydbank vs. Bankers Investment Trust | Sydbank vs. SMA Solar Technology | Sydbank vs. Seraphim Space Investment | Sydbank vs. Primorus Investments plc |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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