Correlation Between Sydbank AS and RTX AS
Can any of the company-specific risk be diversified away by investing in both Sydbank AS and RTX AS 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 RTX AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sydbank AS and RTX AS, you can compare the effects of market volatilities on Sydbank AS and RTX AS 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 RTX AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sydbank AS and RTX AS.
Diversification Opportunities for Sydbank AS and RTX AS
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sydbank and RTX is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Sydbank AS and RTX AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RTX 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 RTX AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RTX AS has no effect on the direction of Sydbank AS i.e., Sydbank AS and RTX AS go up and down completely randomly.
Pair Corralation between Sydbank AS and RTX AS
Assuming the 90 days trading horizon Sydbank AS is expected to generate 0.6 times more return on investment than RTX AS. However, Sydbank AS is 1.68 times less risky than RTX AS. It trades about 0.08 of its potential returns per unit of risk. RTX AS is currently generating about -0.06 per unit of risk. If you would invest 28,803 in Sydbank AS on November 5, 2024 and sell it today you would earn a total of 9,417 from holding Sydbank AS or generate 32.69% 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. RTX AS
Performance |
| Timeline |
| Sydbank AS |
| RTX AS |
Sydbank AS and RTX AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sydbank AS and RTX AS
The main advantage of trading using opposite Sydbank AS and RTX AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sydbank AS position performs unexpectedly, RTX AS 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 RTX AS will offset losses from the drop in RTX AS'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 |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |