Correlation Between Sydbank AS and Solar AS
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By analyzing existing cross correlation between Sydbank AS and Solar AS, you can compare the effects of market volatilities on Sydbank AS and Solar 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 Solar AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sydbank AS and Solar AS.
Diversification Opportunities for Sydbank AS and Solar AS
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sydbank and Solar is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Sydbank AS and Solar AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solar 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 Solar AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solar AS has no effect on the direction of Sydbank AS i.e., Sydbank AS and Solar AS go up and down completely randomly.
Pair Corralation between Sydbank AS and Solar AS
Assuming the 90 days trading horizon Sydbank AS is expected to generate 0.56 times more return on investment than Solar AS. However, Sydbank AS is 1.79 times less risky than Solar AS. It trades about 0.29 of its potential returns per unit of risk. Solar AS is currently generating about -0.07 per unit of risk. If you would invest 32,600 in Sydbank AS on September 1, 2024 and sell it today you would earn a total of 2,460 from holding Sydbank AS or generate 7.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sydbank AS vs. Solar AS
Performance |
| Timeline |
| Sydbank AS |
| Solar AS |
Sydbank AS and Solar AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sydbank AS and Solar AS
The main advantage of trading using opposite Sydbank AS and Solar AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sydbank AS position performs unexpectedly, Solar 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 Solar AS will offset losses from the drop in Solar 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 |
| Solar AS vs. Matas AS | Solar AS vs. NKT AS | Solar AS vs. ROCKWOOL International AS | Solar AS vs. Dampskibsselskabet Norden 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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