Correlation Between Sydbank AS and AP Mller
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By analyzing existing cross correlation between Sydbank AS and AP Mller , you can compare the effects of market volatilities on Sydbank AS and AP Mller 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 AP Mller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sydbank AS and AP Mller.
Diversification Opportunities for Sydbank AS and AP Mller
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sydbank and MAERSK-B is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Sydbank AS and AP Mller in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AP Mller 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 AP Mller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AP Mller has no effect on the direction of Sydbank AS i.e., Sydbank AS and AP Mller go up and down completely randomly.
Pair Corralation between Sydbank AS and AP Mller
Assuming the 90 days trading horizon Sydbank AS is expected to generate 1.79 times less return on investment than AP Mller. But when comparing it to its historical volatility, Sydbank AS is 1.96 times less risky than AP Mller. It trades about 0.19 of its potential returns per unit of risk. AP Mller is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,041,000 in AP Mller on August 28, 2024 and sell it today you would earn a total of 123,000 from holding AP Mller or generate 11.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sydbank AS vs. AP Mller
Performance |
| Timeline |
| Sydbank AS |
| AP Mller |
Sydbank AS and AP Mller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sydbank AS and AP Mller
The main advantage of trading using opposite Sydbank AS and AP Mller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sydbank AS position performs unexpectedly, AP Mller 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 AP Mller will offset losses from the drop in AP Mller'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 |
| AP Mller vs. Danske Bank AS | AP Mller vs. DSV Panalpina AS | AP Mller vs. AP Mller | AP Mller vs. Vestas Wind Systems |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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