Correlation Between Hansa Investment and Sydbank
Can any of the company-specific risk be diversified away by investing in both Hansa Investment and Sydbank 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 Hansa Investment and Sydbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hansa Investment and Sydbank, you can compare the effects of market volatilities on Hansa Investment and Sydbank 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 Hansa Investment with a short position of Sydbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hansa Investment and Sydbank.
Diversification Opportunities for Hansa Investment and Sydbank
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hansa and Sydbank is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Hansa Investment and Sydbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sydbank and Hansa Investment 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 Hansa Investment are associated (or correlated) with Sydbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sydbank has no effect on the direction of Hansa Investment i.e., Hansa Investment and Sydbank go up and down completely randomly.
Pair Corralation between Hansa Investment and Sydbank
Assuming the 90 days trading horizon Hansa Investment is expected to generate 1.09 times more return on investment than Sydbank. However, Hansa Investment is 1.09 times more volatile than Sydbank. It trades about 0.05 of its potential returns per unit of risk. Sydbank is currently generating about 0.05 per unit of risk. If you would invest 18,496 in Hansa Investment on September 12, 2024 and sell it today you would earn a total of 5,304 from holding Hansa Investment or generate 28.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hansa Investment vs. Sydbank
Performance |
| Timeline |
| Hansa Investment |
| Sydbank |
Hansa Investment and Sydbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hansa Investment and Sydbank
The main advantage of trading using opposite Hansa Investment and Sydbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hansa Investment position performs unexpectedly, Sydbank 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 will offset losses from the drop in Sydbank's long position.| Hansa Investment vs. Axfood AB | Hansa Investment vs. CompuGroup Medical AG | Hansa Investment vs. Charter Communications Cl | Hansa Investment vs. MTI Wireless Edge |
| Sydbank vs. Hansa Investment | Sydbank vs. Beeks Trading | Sydbank vs. Taylor Maritime Investments | Sydbank vs. Telecom Italia SpA |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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