Correlation Between Fynske Bank and Sydbank AS
Can any of the company-specific risk be diversified away by investing in both Fynske Bank 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 Fynske Bank and Sydbank AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fynske Bank AS and Sydbank AS, you can compare the effects of market volatilities on Fynske Bank 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 Fynske Bank with a short position of Sydbank AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fynske Bank and Sydbank AS.
Diversification Opportunities for Fynske Bank and Sydbank AS
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fynske and Sydbank is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Fynske Bank AS and Sydbank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sydbank AS and Fynske Bank 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 Fynske Bank 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 Fynske Bank i.e., Fynske Bank and Sydbank AS go up and down completely randomly.
Pair Corralation between Fynske Bank and Sydbank AS
Assuming the 90 days trading horizon Fynske Bank is expected to generate 10.18 times less return on investment than Sydbank AS. In addition to that, Fynske Bank is 1.95 times more volatile than Sydbank AS. It trades about 0.02 of its total potential returns per unit of risk. Sydbank AS is currently generating about 0.49 per unit of volatility. If you would invest 37,680 in Sydbank AS on November 27, 2024 and sell it today you would earn a total of 4,440 from holding Sydbank AS or generate 11.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fynske Bank AS vs. Sydbank AS
Performance |
| Timeline |
| Fynske Bank AS |
| Sydbank AS |
Fynske Bank and Sydbank AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fynske Bank and Sydbank AS
The main advantage of trading using opposite Fynske Bank and Sydbank AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fynske Bank 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.| Fynske Bank vs. Skjern Bank AS | Fynske Bank vs. Djurslands Bank | Fynske Bank vs. Sparekassen Sjaelland Fyn AS | Fynske Bank vs. Groenlandsbanken 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 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.
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