Correlation Between Carnegie Wealth and Sydbank AS
Can any of the company-specific risk be diversified away by investing in both Carnegie Wealth and Sydbank AS 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 Carnegie Wealth and Sydbank AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carnegie Wealth Management and Sydbank AS, you can compare the effects of market volatilities on Carnegie Wealth and Sydbank AS 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 Carnegie Wealth with a short position of Sydbank AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carnegie Wealth and Sydbank AS.
Diversification Opportunities for Carnegie Wealth and Sydbank AS
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Carnegie and Sydbank is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Carnegie Wealth Management and Sydbank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sydbank AS and Carnegie Wealth 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 Carnegie Wealth Management are associated (or correlated) with Sydbank AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sydbank AS has no effect on the direction of Carnegie Wealth i.e., Carnegie Wealth and Sydbank AS go up and down completely randomly.
Pair Corralation between Carnegie Wealth and Sydbank AS
Assuming the 90 days trading horizon Carnegie Wealth is expected to generate 1.77 times less return on investment than Sydbank AS. But when comparing it to its historical volatility, Carnegie Wealth Management is 1.38 times less risky than Sydbank AS. It trades about 0.2 of its potential returns per unit of risk. Sydbank AS is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 35,880 in Sydbank AS on September 18, 2024 and sell it today you would earn a total of 2,180 from holding Sydbank AS or generate 6.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Carnegie Wealth Management vs. Sydbank AS
Performance |
| Timeline |
| Carnegie Wealth Mana |
| Sydbank AS |
Carnegie Wealth and Sydbank AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carnegie Wealth and Sydbank AS
The main advantage of trading using opposite Carnegie Wealth and Sydbank AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carnegie Wealth position performs unexpectedly, Sydbank AS 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 AS will offset losses from the drop in Sydbank AS's long position.| Carnegie Wealth vs. Novo Nordisk AS | Carnegie Wealth vs. Nordea Bank Abp | Carnegie Wealth vs. DSV Panalpina AS | Carnegie Wealth vs. AP Mller |
| Sydbank AS vs. FLSmidth Co | Sydbank AS vs. Danske Bank AS | Sydbank AS vs. ISS AS | Sydbank AS vs. DSV Panalpina AS |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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