Correlation Between Danske Invest and Sydbank AS
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By analyzing existing cross correlation between Danske Invest 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
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Danske and Sydbank is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Danske Invest 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 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 is expected to generate 2.05 times less return on investment than Sydbank AS. But when comparing it to its historical volatility, Danske Invest is 8.39 times less risky than Sydbank AS. It trades about 0.18 of its potential returns per unit of risk. Sydbank AS is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 31,250 in Sydbank AS on September 12, 2024 and sell it today you would earn a total of 6,010 from holding Sydbank AS or generate 19.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Danske Invest vs. Sydbank AS
Performance |
| Timeline |
| Danske Invest |
| 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. Sydbank AS | Danske Invest vs. Groenlandsbanken AS | Danske Invest vs. Ringkjoebing Landbobank AS | Danske Invest vs. Skjern Bank 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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