Correlation Between Sydbank AS and IA Invest
Can any of the company-specific risk be diversified away by investing in both Sydbank AS and IA Invest 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 IA Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sydbank AS and IA Invest Peruma, you can compare the effects of market volatilities on Sydbank AS and IA Invest 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 IA Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sydbank AS and IA Invest.
Diversification Opportunities for Sydbank AS and IA Invest
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sydbank and IAIPGA is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Sydbank AS and IA Invest Peruma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IA Invest Peruma 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 IA Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IA Invest Peruma has no effect on the direction of Sydbank AS i.e., Sydbank AS and IA Invest go up and down completely randomly.
Pair Corralation between Sydbank AS and IA Invest
Assuming the 90 days trading horizon Sydbank AS is expected to generate 1.7 times more return on investment than IA Invest. However, Sydbank AS is 1.7 times more volatile than IA Invest Peruma. It trades about 0.03 of its potential returns per unit of risk. IA Invest Peruma is currently generating about -0.01 per unit of risk. If you would invest 37,740 in Sydbank AS on October 18, 2024 and sell it today you would earn a total of 280.00 from holding Sydbank AS or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 76.47% |
| Values | Daily Returns |
Sydbank AS vs. IA Invest Peruma
Performance |
| Timeline |
| Sydbank AS |
| IA Invest Peruma |
Sydbank AS and IA Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sydbank AS and IA Invest
The main advantage of trading using opposite Sydbank AS and IA Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sydbank AS position performs unexpectedly, IA Invest 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 IA Invest will offset losses from the drop in IA Invest'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 |
| IA Invest vs. North Media AS | IA Invest vs. Carnegie Wealth Management | IA Invest vs. Sydbank AS | IA Invest vs. Danske Andelskassers Bank |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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