Correlation Between Danske Invest and Sydbank AS
Can any of the company-specific risk be diversified away by investing in both Danske Invest 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 Danske Invest and Sydbank AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Danske Invest Danmark and Sydbank AS, you can compare the effects of market volatilities on Danske Invest 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 Danske Invest with a short position of Sydbank AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Danske Invest and Sydbank AS.
Diversification Opportunities for Danske Invest and Sydbank AS
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Danske and Sydbank is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Danske Invest Danmark and Sydbank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sydbank AS and Danske Invest 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 Danske Invest Danmark 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 Danske Invest i.e., Danske Invest and Sydbank AS go up and down completely randomly.
Pair Corralation between Danske Invest and Sydbank AS
Assuming the 90 days trading horizon Danske Invest Danmark is expected to under-perform the Sydbank AS. But the stock apears to be less risky and, when comparing its historical volatility, Danske Invest Danmark is 1.27 times less risky than Sydbank AS. The stock trades about -0.15 of its potential returns per unit of risk. The Sydbank AS is currently generating about 0.24 of returns per unit of risk over similar time horizon. 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Danske Invest Danmark vs. Sydbank AS
Performance |
| Timeline |
| Danske Invest Danmark |
| Sydbank AS |
Danske Invest and Sydbank AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Danske Invest and Sydbank AS
The main advantage of trading using opposite Danske Invest and Sydbank AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Danske Invest 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.| Danske Invest vs. Novo Nordisk AS | Danske Invest vs. Nordea Bank Abp | Danske Invest vs. DSV Panalpina AS | Danske Invest vs. AP Mller |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |