Correlation Between Nordea Bank and Sydinvest Mellemlange
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By analyzing existing cross correlation between Nordea Bank Abp and Sydinvest Mellemlange Obligationer, you can compare the effects of market volatilities on Nordea Bank and Sydinvest Mellemlange 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 Nordea Bank with a short position of Sydinvest Mellemlange. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordea Bank and Sydinvest Mellemlange.
Diversification Opportunities for Nordea Bank and Sydinvest Mellemlange
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nordea and Sydinvest is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Nordea Bank Abp and Sydinvest Mellemlange Obligati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sydinvest Mellemlange and Nordea 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 Nordea Bank Abp are associated (or correlated) with Sydinvest Mellemlange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sydinvest Mellemlange has no effect on the direction of Nordea Bank i.e., Nordea Bank and Sydinvest Mellemlange go up and down completely randomly.
Pair Corralation between Nordea Bank and Sydinvest Mellemlange
Assuming the 90 days trading horizon Nordea Bank Abp is expected to under-perform the Sydinvest Mellemlange. In addition to that, Nordea Bank is 14.55 times more volatile than Sydinvest Mellemlange Obligationer. It trades about -0.13 of its total potential returns per unit of risk. Sydinvest Mellemlange Obligationer is currently generating about 0.28 per unit of volatility. If you would invest 10,417 in Sydinvest Mellemlange Obligationer on August 30, 2024 and sell it today you would earn a total of 52.00 from holding Sydinvest Mellemlange Obligationer or generate 0.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordea Bank Abp vs. Sydinvest Mellemlange Obligati
Performance |
| Timeline |
| Nordea Bank Abp |
| Sydinvest Mellemlange |
Nordea Bank and Sydinvest Mellemlange Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordea Bank and Sydinvest Mellemlange
The main advantage of trading using opposite Nordea Bank and Sydinvest Mellemlange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordea Bank position performs unexpectedly, Sydinvest Mellemlange 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 Sydinvest Mellemlange will offset losses from the drop in Sydinvest Mellemlange's long position.| Nordea Bank vs. Jyske Bank AS | Nordea Bank vs. Tryg AS | Nordea Bank vs. Danske Bank AS | Nordea Bank vs. ISS AS |
| Sydinvest Mellemlange vs. Novo Nordisk AS | Sydinvest Mellemlange vs. Nordea Bank Abp | Sydinvest Mellemlange vs. DSV Panalpina AS | Sydinvest Mellemlange vs. AP Mller |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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