Correlation Between Sydbank AS and PARKEN Sport
Can any of the company-specific risk be diversified away by investing in both Sydbank AS and PARKEN Sport 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 PARKEN Sport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sydbank AS and PARKEN Sport Entertainment, you can compare the effects of market volatilities on Sydbank AS and PARKEN Sport 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 PARKEN Sport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sydbank AS and PARKEN Sport.
Diversification Opportunities for Sydbank AS and PARKEN Sport
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sydbank and PARKEN is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Sydbank AS and PARKEN Sport Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PARKEN Sport Enterta 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 PARKEN Sport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PARKEN Sport Enterta has no effect on the direction of Sydbank AS i.e., Sydbank AS and PARKEN Sport go up and down completely randomly.
Pair Corralation between Sydbank AS and PARKEN Sport
Assuming the 90 days trading horizon Sydbank AS is expected to generate 0.75 times more return on investment than PARKEN Sport. However, Sydbank AS is 1.33 times less risky than PARKEN Sport. It trades about 0.07 of its potential returns per unit of risk. PARKEN Sport Entertainment is currently generating about -0.01 per unit of risk. If you would invest 27,422 in Sydbank AS on August 25, 2024 and sell it today you would earn a total of 7,858 from holding Sydbank AS or generate 28.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sydbank AS vs. PARKEN Sport Entertainment
Performance |
| Timeline |
| Sydbank AS |
| PARKEN Sport Enterta |
Sydbank AS and PARKEN Sport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sydbank AS and PARKEN Sport
The main advantage of trading using opposite Sydbank AS and PARKEN Sport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sydbank AS position performs unexpectedly, PARKEN Sport 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 PARKEN Sport will offset losses from the drop in PARKEN Sport'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 |
| PARKEN Sport vs. Broendbyernes IF Fodbold | PARKEN Sport vs. Bang Olufsen | PARKEN Sport vs. Matas AS | PARKEN Sport vs. NKT 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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