Correlation Between Konsolidator and Sydbank AS
Can any of the company-specific risk be diversified away by investing in both Konsolidator 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 Konsolidator and Sydbank AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Konsolidator AS and Sydbank AS, you can compare the effects of market volatilities on Konsolidator 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 Konsolidator with a short position of Sydbank AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konsolidator and Sydbank AS.
Diversification Opportunities for Konsolidator and Sydbank AS
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Konsolidator and Sydbank is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Konsolidator AS and Sydbank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sydbank AS and Konsolidator 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 Konsolidator 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 Konsolidator i.e., Konsolidator and Sydbank AS go up and down completely randomly.
Pair Corralation between Konsolidator and Sydbank AS
Assuming the 90 days trading horizon Konsolidator AS is expected to under-perform the Sydbank AS. In addition to that, Konsolidator is 2.2 times more volatile than Sydbank AS. It trades about -0.09 of its total potential returns per unit of risk. Sydbank AS is currently generating about 0.21 per unit of volatility. If you would invest 35,440 in Sydbank AS on October 20, 2024 and sell it today you would earn a total of 2,400 from holding Sydbank AS or generate 6.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Konsolidator AS vs. Sydbank AS
Performance |
| Timeline |
| Konsolidator AS |
| Sydbank AS |
Konsolidator and Sydbank AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konsolidator and Sydbank AS
The main advantage of trading using opposite Konsolidator and Sydbank AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konsolidator 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.| Konsolidator vs. Groenlandsbanken AS | Konsolidator vs. Scandinavian Tobacco Group | Konsolidator vs. North Media AS | Konsolidator vs. Formuepleje Mix Medium |
| 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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