Correlation Between Sydbank AS and Nordea Invest
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By analyzing existing cross correlation between Sydbank AS and Nordea Invest Aktier, you can compare the effects of market volatilities on Sydbank AS and Nordea 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 Nordea Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sydbank AS and Nordea Invest.
Diversification Opportunities for Sydbank AS and Nordea Invest
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sydbank and Nordea is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Sydbank AS and Nordea Invest Aktier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Aktier 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 Nordea Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Invest Aktier has no effect on the direction of Sydbank AS i.e., Sydbank AS and Nordea Invest go up and down completely randomly.
Pair Corralation between Sydbank AS and Nordea Invest
Assuming the 90 days trading horizon Sydbank AS is expected to generate 1.82 times more return on investment than Nordea Invest. However, Sydbank AS is 1.82 times more volatile than Nordea Invest Aktier. It trades about 0.16 of its potential returns per unit of risk. Nordea Invest Aktier is currently generating about 0.16 per unit of risk. If you would invest 33,740 in Sydbank AS on September 20, 2024 and sell it today you would earn a total of 4,640 from holding Sydbank AS or generate 13.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 75.0% |
| Values | Daily Returns |
Sydbank AS vs. Nordea Invest Aktier
Performance |
| Timeline |
| Sydbank AS |
| Nordea Invest Aktier |
Sydbank AS and Nordea Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sydbank AS and Nordea Invest
The main advantage of trading using opposite Sydbank AS and Nordea Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sydbank AS position performs unexpectedly, Nordea 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 Nordea Invest will offset losses from the drop in Nordea 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 |
| Nordea Invest vs. Novo Nordisk AS | Nordea Invest vs. Nordea Bank Abp | Nordea Invest vs. DSV Panalpina AS | Nordea Invest 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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