Correlation Between Spar Nord and Sydinvest Mellemlange
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By analyzing existing cross correlation between Spar Nord Bank and Sydinvest Mellemlange Obligationer, you can compare the effects of market volatilities on Spar Nord 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 Spar Nord with a short position of Sydinvest Mellemlange. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spar Nord and Sydinvest Mellemlange.
Diversification Opportunities for Spar Nord and Sydinvest Mellemlange
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Spar and Sydinvest is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Spar Nord Bank and Sydinvest Mellemlange Obligati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sydinvest Mellemlange and Spar Nord 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 Spar Nord Bank 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 Spar Nord i.e., Spar Nord and Sydinvest Mellemlange go up and down completely randomly.
Pair Corralation between Spar Nord and Sydinvest Mellemlange
Assuming the 90 days trading horizon Spar Nord Bank is expected to generate 12.77 times more return on investment than Sydinvest Mellemlange. However, Spar Nord is 12.77 times more volatile than Sydinvest Mellemlange Obligationer. It trades about 0.1 of its potential returns per unit of risk. Sydinvest Mellemlange Obligationer is currently generating about 0.22 per unit of risk. If you would invest 9,555 in Spar Nord Bank on September 4, 2024 and sell it today you would earn a total of 4,425 from holding Spar Nord Bank or generate 46.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Spar Nord Bank vs. Sydinvest Mellemlange Obligati
Performance |
| Timeline |
| Spar Nord Bank |
| Sydinvest Mellemlange |
Spar Nord and Sydinvest Mellemlange Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spar Nord and Sydinvest Mellemlange
The main advantage of trading using opposite Spar Nord and Sydinvest Mellemlange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spar Nord 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.The idea behind Spar Nord Bank and Sydinvest Mellemlange Obligationer pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Sydinvest Mellemlange vs. PARKEN Sport Entertainment | Sydinvest Mellemlange vs. Vestjysk Bank AS | Sydinvest Mellemlange vs. NTG Nordic Transport | Sydinvest Mellemlange vs. Nordinvestments 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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