Correlation Between Sparekassen Sjaelland and Lollands Bank
Can any of the company-specific risk be diversified away by investing in both Sparekassen Sjaelland and Lollands Bank 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 Sparekassen Sjaelland and Lollands Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sparekassen Sjaelland Fyn AS and Lollands Bank, you can compare the effects of market volatilities on Sparekassen Sjaelland and Lollands Bank 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 Sparekassen Sjaelland with a short position of Lollands Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sparekassen Sjaelland and Lollands Bank.
Diversification Opportunities for Sparekassen Sjaelland and Lollands Bank
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sparekassen and Lollands is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Sparekassen Sjaelland Fyn AS and Lollands Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lollands Bank and Sparekassen Sjaelland 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 Sparekassen Sjaelland Fyn AS are associated (or correlated) with Lollands Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lollands Bank has no effect on the direction of Sparekassen Sjaelland i.e., Sparekassen Sjaelland and Lollands Bank go up and down completely randomly.
Pair Corralation between Sparekassen Sjaelland and Lollands Bank
Assuming the 90 days trading horizon Sparekassen Sjaelland Fyn AS is expected to generate 0.61 times more return on investment than Lollands Bank. However, Sparekassen Sjaelland Fyn AS is 1.65 times less risky than Lollands Bank. It trades about -0.02 of its potential returns per unit of risk. Lollands Bank is currently generating about -0.03 per unit of risk. If you would invest 21,300 in Sparekassen Sjaelland Fyn AS on August 29, 2024 and sell it today you would lose (300.00) from holding Sparekassen Sjaelland Fyn AS or give up 1.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sparekassen Sjaelland Fyn AS vs. Lollands Bank
Performance |
| Timeline |
| Sparekassen Sjaelland |
| Lollands Bank |
Sparekassen Sjaelland and Lollands Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sparekassen Sjaelland and Lollands Bank
The main advantage of trading using opposite Sparekassen Sjaelland and Lollands Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sparekassen Sjaelland position performs unexpectedly, Lollands Bank 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 Lollands Bank will offset losses from the drop in Lollands Bank's long position.| Sparekassen Sjaelland vs. Sydbank AS | Sparekassen Sjaelland vs. Spar Nord Bank | Sparekassen Sjaelland vs. Per Aarsleff Holding | Sparekassen Sjaelland vs. Vestjysk Bank AS |
| Lollands Bank vs. Skjern Bank AS | Lollands Bank vs. Kreditbanken AS | Lollands Bank vs. Djurslands Bank | Lollands Bank vs. Groenlandsbanken AS |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| 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 | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |