Correlation Between Panther Metals and Sydbank
Can any of the company-specific risk be diversified away by investing in both Panther Metals 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 Panther Metals and Sydbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panther Metals PLC and Sydbank, you can compare the effects of market volatilities on Panther Metals 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 Panther Metals with a short position of Sydbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panther Metals and Sydbank.
Diversification Opportunities for Panther Metals and Sydbank
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Panther and Sydbank is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Panther Metals PLC and Sydbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sydbank and Panther Metals 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 Panther Metals PLC 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 Panther Metals i.e., Panther Metals and Sydbank go up and down completely randomly.
Pair Corralation between Panther Metals and Sydbank
Assuming the 90 days trading horizon Panther Metals PLC is expected to generate 3.14 times more return on investment than Sydbank. However, Panther Metals is 3.14 times more volatile than Sydbank. It trades about 0.18 of its potential returns per unit of risk. Sydbank is currently generating about 0.13 per unit of risk. If you would invest 9,500 in Panther Metals PLC on August 29, 2024 and sell it today you would earn a total of 2,000 from holding Panther Metals PLC or generate 21.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panther Metals PLC vs. Sydbank
Performance |
| Timeline |
| Panther Metals PLC |
| Sydbank |
Panther Metals and Sydbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panther Metals and Sydbank
The main advantage of trading using opposite Panther Metals and Sydbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panther Metals 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.| Panther Metals vs. Atalaya Mining | Panther Metals vs. Anglo Asian Mining | Panther Metals vs. Metals Exploration Plc |
| Sydbank vs. Lendinvest PLC | Sydbank vs. Neometals | Sydbank vs. Coor Service Management | Sydbank vs. Albion Technology General |
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 CEOs Directory module to screen CEOs from public companies around the world.
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