Correlation Between Sydbank AS and EgnsINVEST Ejendomme
Can any of the company-specific risk be diversified away by investing in both Sydbank AS and EgnsINVEST Ejendomme 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 EgnsINVEST Ejendomme into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sydbank AS and EgnsINVEST Ejendomme Tyskland, you can compare the effects of market volatilities on Sydbank AS and EgnsINVEST Ejendomme 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 EgnsINVEST Ejendomme. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sydbank AS and EgnsINVEST Ejendomme.
Diversification Opportunities for Sydbank AS and EgnsINVEST Ejendomme
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sydbank and EgnsINVEST is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Sydbank AS and EgnsINVEST Ejendomme Tyskland in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EgnsINVEST Ejendomme 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 EgnsINVEST Ejendomme. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EgnsINVEST Ejendomme has no effect on the direction of Sydbank AS i.e., Sydbank AS and EgnsINVEST Ejendomme go up and down completely randomly.
Pair Corralation between Sydbank AS and EgnsINVEST Ejendomme
Assuming the 90 days trading horizon Sydbank AS is expected to generate 1.42 times more return on investment than EgnsINVEST Ejendomme. However, Sydbank AS is 1.42 times more volatile than EgnsINVEST Ejendomme Tyskland. It trades about 0.17 of its potential returns per unit of risk. EgnsINVEST Ejendomme Tyskland is currently generating about 0.04 per unit of risk. If you would invest 35,920 in Sydbank AS on October 21, 2024 and sell it today you would earn a total of 1,920 from holding Sydbank AS or generate 5.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sydbank AS vs. EgnsINVEST Ejendomme Tyskland
Performance |
| Timeline |
| Sydbank AS |
| EgnsINVEST Ejendomme |
Sydbank AS and EgnsINVEST Ejendomme Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sydbank AS and EgnsINVEST Ejendomme
The main advantage of trading using opposite Sydbank AS and EgnsINVEST Ejendomme positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sydbank AS position performs unexpectedly, EgnsINVEST Ejendomme 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 EgnsINVEST Ejendomme will offset losses from the drop in EgnsINVEST Ejendomme'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 |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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