Correlation Between Sydbank AS and Prime Office
Can any of the company-specific risk be diversified away by investing in both Sydbank AS and Prime Office 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 Prime Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sydbank AS and Prime Office AS, you can compare the effects of market volatilities on Sydbank AS and Prime Office 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 Prime Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sydbank AS and Prime Office.
Diversification Opportunities for Sydbank AS and Prime Office
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sydbank and Prime is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Sydbank AS and Prime Office AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prime Office 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 Prime Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prime Office AS has no effect on the direction of Sydbank AS i.e., Sydbank AS and Prime Office go up and down completely randomly.
Pair Corralation between Sydbank AS and Prime Office
Assuming the 90 days trading horizon Sydbank AS is expected to generate 0.7 times more return on investment than Prime Office. However, Sydbank AS is 1.44 times less risky than Prime Office. It trades about 0.06 of its potential returns per unit of risk. Prime Office AS is currently generating about -0.01 per unit of risk. If you would invest 23,143 in Sydbank AS on August 25, 2024 and sell it today you would earn a total of 12,137 from holding Sydbank AS or generate 52.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sydbank AS vs. Prime Office AS
Performance |
| Timeline |
| Sydbank AS |
| Prime Office AS |
Sydbank AS and Prime Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sydbank AS and Prime Office
The main advantage of trading using opposite Sydbank AS and Prime Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sydbank AS position performs unexpectedly, Prime Office 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 Prime Office will offset losses from the drop in Prime Office'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 |
| Prime Office vs. BioPorto | Prime Office vs. Newcap Holding AS | Prime Office vs. Agat Ejendomme AS | Prime Office vs. PF Atlantic Petroleum |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |