Correlation Between Ennogie Solar and Sydbank AS
Can any of the company-specific risk be diversified away by investing in both Ennogie Solar 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 Ennogie Solar and Sydbank AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ennogie Solar Group and Sydbank AS, you can compare the effects of market volatilities on Ennogie Solar 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 Ennogie Solar with a short position of Sydbank AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ennogie Solar and Sydbank AS.
Diversification Opportunities for Ennogie Solar and Sydbank AS
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ennogie and Sydbank is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Ennogie Solar Group and Sydbank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sydbank AS and Ennogie Solar 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 Ennogie Solar Group 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 Ennogie Solar i.e., Ennogie Solar and Sydbank AS go up and down completely randomly.
Pair Corralation between Ennogie Solar and Sydbank AS
Assuming the 90 days trading horizon Ennogie Solar Group is expected to under-perform the Sydbank AS. In addition to that, Ennogie Solar is 2.78 times more volatile than Sydbank AS. It trades about -0.08 of its total potential returns per unit of risk. Sydbank AS is currently generating about 0.07 per unit of volatility. If you would invest 27,238 in Sydbank AS on August 29, 2024 and sell it today you would earn a total of 7,582 from holding Sydbank AS or generate 27.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Ennogie Solar Group vs. Sydbank AS
Performance |
| Timeline |
| Ennogie Solar Group |
| Sydbank AS |
Ennogie Solar and Sydbank AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ennogie Solar and Sydbank AS
The main advantage of trading using opposite Ennogie Solar and Sydbank AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ennogie Solar 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.| Ennogie Solar vs. Green Hydrogen Systems | Ennogie Solar vs. ALK Abell AS | Ennogie Solar vs. H Lundbeck AS | Ennogie Solar vs. TORM plc |
| 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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