Correlation Between Sydbank AS and Bactiquant
Can any of the company-specific risk be diversified away by investing in both Sydbank AS and Bactiquant 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 Sydbank AS and Bactiquant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sydbank AS and Bactiquant AS, you can compare the effects of market volatilities on Sydbank AS and Bactiquant 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 Sydbank AS with a short position of Bactiquant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sydbank AS and Bactiquant.
Diversification Opportunities for Sydbank AS and Bactiquant
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sydbank and Bactiquant is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Sydbank AS and Bactiquant AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bactiquant AS and Sydbank AS 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 Sydbank AS are associated (or correlated) with Bactiquant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bactiquant AS has no effect on the direction of Sydbank AS i.e., Sydbank AS and Bactiquant go up and down completely randomly.
Pair Corralation between Sydbank AS and Bactiquant
Assuming the 90 days trading horizon Sydbank AS is expected to generate 0.41 times more return on investment than Bactiquant. However, Sydbank AS is 2.47 times less risky than Bactiquant. It trades about 0.15 of its potential returns per unit of risk. Bactiquant AS is currently generating about -0.26 per unit of risk. If you would invest 32,900 in Sydbank AS on August 29, 2024 and sell it today you would earn a total of 1,920 from holding Sydbank AS or generate 5.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sydbank AS vs. Bactiquant AS
Performance |
| Timeline |
| Sydbank AS |
| Bactiquant AS |
Sydbank AS and Bactiquant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sydbank AS and Bactiquant
The main advantage of trading using opposite Sydbank AS and Bactiquant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sydbank AS position performs unexpectedly, Bactiquant 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 Bactiquant will offset losses from the drop in Bactiquant's long position.| Sydbank AS vs. Jyske Bank AS | Sydbank AS vs. Tryg AS | Sydbank AS vs. FLSmidth Co | Sydbank AS vs. Nordea Bank Abp |
| Bactiquant vs. Skjern Bank AS | Bactiquant vs. North Media AS | Bactiquant vs. Nordfyns Bank AS | Bactiquant vs. PARKEN Sport Entertainment |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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