Correlation Between Sydbank AS and North Media
Can any of the company-specific risk be diversified away by investing in both Sydbank AS and North Media 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 North Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sydbank AS and North Media AS, you can compare the effects of market volatilities on Sydbank AS and North Media 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 North Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sydbank AS and North Media.
Diversification Opportunities for Sydbank AS and North Media
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sydbank and North is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Sydbank AS and North Media AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Media AS 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 North Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Media AS has no effect on the direction of Sydbank AS i.e., Sydbank AS and North Media go up and down completely randomly.
Pair Corralation between Sydbank AS and North Media
Assuming the 90 days trading horizon Sydbank AS is expected to generate 1.16 times more return on investment than North Media. However, Sydbank AS is 1.16 times more volatile than North Media AS. It trades about 0.32 of its potential returns per unit of risk. North Media AS is currently generating about -0.29 per unit of risk. If you would invest 31,700 in Sydbank AS on August 30, 2024 and sell it today you would earn a total of 3,540 from holding Sydbank AS or generate 11.17% 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. North Media AS
Performance |
| Timeline |
| Sydbank AS |
| North Media AS |
Sydbank AS and North Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sydbank AS and North Media
The main advantage of trading using opposite Sydbank AS and North Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sydbank AS position performs unexpectedly, North Media 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 North Media will offset losses from the drop in North Media'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 |
| North Media vs. Matas AS | North Media vs. cBrain AS | North Media vs. Alm Brand | North Media vs. Netcompany Group AS |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |