Correlation Between Lollands Bank and SDG Invest
Can any of the company-specific risk be diversified away by investing in both Lollands Bank and SDG Invest 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 Lollands Bank and SDG Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lollands Bank and SDG Invest Globale, you can compare the effects of market volatilities on Lollands Bank and SDG Invest 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 Lollands Bank with a short position of SDG Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lollands Bank and SDG Invest.
Diversification Opportunities for Lollands Bank and SDG Invest
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lollands and SDG is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Lollands Bank and SDG Invest Globale in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SDG Invest Globale and Lollands 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 Lollands Bank are associated (or correlated) with SDG Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SDG Invest Globale has no effect on the direction of Lollands Bank i.e., Lollands Bank and SDG Invest go up and down completely randomly.
Pair Corralation between Lollands Bank and SDG Invest
Assuming the 90 days trading horizon Lollands Bank is expected to generate 1.44 times more return on investment than SDG Invest. However, Lollands Bank is 1.44 times more volatile than SDG Invest Globale. It trades about 0.3 of its potential returns per unit of risk. SDG Invest Globale is currently generating about 0.2 per unit of risk. If you would invest 58,500 in Lollands Bank on November 5, 2024 and sell it today you would earn a total of 3,500 from holding Lollands Bank or generate 5.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lollands Bank vs. SDG Invest Globale
Performance |
| Timeline |
| Lollands Bank |
| SDG Invest Globale |
Lollands Bank and SDG Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lollands Bank and SDG Invest
The main advantage of trading using opposite Lollands Bank and SDG Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lollands Bank position performs unexpectedly, SDG Invest 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 SDG Invest will offset losses from the drop in SDG Invest's long position.| Lollands Bank vs. Skjern Bank AS | Lollands Bank vs. Kreditbanken AS | Lollands Bank vs. Djurslands Bank | Lollands Bank vs. Groenlandsbanken AS |
| SDG Invest vs. Djurslands Bank | SDG Invest vs. Danske Andelskassers Bank | SDG Invest vs. NTG Nordic Transport | SDG Invest vs. Scandinavian Tobacco Group |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |