Correlation Between Dataproces Group and Sydbank AS
Can any of the company-specific risk be diversified away by investing in both Dataproces Group 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 Dataproces Group and Sydbank AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dataproces Group AS and Sydbank AS, you can compare the effects of market volatilities on Dataproces Group 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 Dataproces Group with a short position of Sydbank AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dataproces Group and Sydbank AS.
Diversification Opportunities for Dataproces Group and Sydbank AS
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dataproces and Sydbank is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Dataproces Group AS and Sydbank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sydbank AS and Dataproces Group 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 Dataproces Group AS 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 Dataproces Group i.e., Dataproces Group and Sydbank AS go up and down completely randomly.
Pair Corralation between Dataproces Group and Sydbank AS
Assuming the 90 days trading horizon Dataproces Group AS is expected to under-perform the Sydbank AS. In addition to that, Dataproces Group is 2.73 times more volatile than Sydbank AS. It trades about -0.11 of its total potential returns per unit of risk. Sydbank AS is currently generating about 0.24 per unit of volatility. If you would invest 33,100 in Sydbank AS on September 2, 2024 and sell it today you would earn a total of 1,960 from holding Sydbank AS or generate 5.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dataproces Group AS vs. Sydbank AS
Performance |
| Timeline |
| Dataproces Group |
| Sydbank AS |
Dataproces Group and Sydbank AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dataproces Group and Sydbank AS
The main advantage of trading using opposite Dataproces Group and Sydbank AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dataproces Group 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.| Dataproces Group vs. Penneo AS | Dataproces Group vs. Bactiquant AS | Dataproces Group vs. cBrain AS | Dataproces Group vs. FOM Technologies AS |
| Sydbank AS vs. Jyske Bank AS | Sydbank AS vs. Tryg AS | Sydbank AS vs. FLSmidth Co | Sydbank AS vs. Nordea Bank Abp |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |