Correlation Between Sydbank AS and BankIn Bredygt
Can any of the company-specific risk be diversified away by investing in both Sydbank AS and BankIn Bredygt 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 BankIn Bredygt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sydbank AS and BankIn Bredygt Klimaakt, you can compare the effects of market volatilities on Sydbank AS and BankIn Bredygt 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 BankIn Bredygt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sydbank AS and BankIn Bredygt.
Diversification Opportunities for Sydbank AS and BankIn Bredygt
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sydbank and BankIn is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Sydbank AS and BankIn Bredygt Klimaakt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankIn Bredygt Klimaakt 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 BankIn Bredygt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankIn Bredygt Klimaakt has no effect on the direction of Sydbank AS i.e., Sydbank AS and BankIn Bredygt go up and down completely randomly.
Pair Corralation between Sydbank AS and BankIn Bredygt
Assuming the 90 days trading horizon Sydbank AS is expected to generate 7.67 times less return on investment than BankIn Bredygt. In addition to that, Sydbank AS is 1.7 times more volatile than BankIn Bredygt Klimaakt. It trades about 0.02 of its total potential returns per unit of risk. BankIn Bredygt Klimaakt is currently generating about 0.22 per unit of volatility. If you would invest 10,240 in BankIn Bredygt Klimaakt on November 3, 2024 and sell it today you would earn a total of 270.00 from holding BankIn Bredygt Klimaakt or generate 2.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 63.64% |
| Values | Daily Returns |
Sydbank AS vs. BankIn Bredygt Klimaakt
Performance |
| Timeline |
| Sydbank AS |
| BankIn Bredygt Klimaakt |
Sydbank AS and BankIn Bredygt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sydbank AS and BankIn Bredygt
The main advantage of trading using opposite Sydbank AS and BankIn Bredygt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sydbank AS position performs unexpectedly, BankIn Bredygt 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 BankIn Bredygt will offset losses from the drop in BankIn Bredygt'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 |
| BankIn Bredygt vs. Novo Nordisk AS | BankIn Bredygt vs. Nordea Bank Abp | BankIn Bredygt vs. DSV Panalpina AS | BankIn Bredygt 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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