Correlation Between Sydinvest Mellemlange and Groenlandsbanken
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By analyzing existing cross correlation between Sydinvest Mellemlange Obligationer and Groenlandsbanken AS, you can compare the effects of market volatilities on Sydinvest Mellemlange and Groenlandsbanken 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 Sydinvest Mellemlange with a short position of Groenlandsbanken. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sydinvest Mellemlange and Groenlandsbanken.
Diversification Opportunities for Sydinvest Mellemlange and Groenlandsbanken
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sydinvest and Groenlandsbanken is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Sydinvest Mellemlange Obligati and Groenlandsbanken AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groenlandsbanken and Sydinvest Mellemlange 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 Sydinvest Mellemlange Obligationer are associated (or correlated) with Groenlandsbanken. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groenlandsbanken has no effect on the direction of Sydinvest Mellemlange i.e., Sydinvest Mellemlange and Groenlandsbanken go up and down completely randomly.
Pair Corralation between Sydinvest Mellemlange and Groenlandsbanken
Assuming the 90 days trading horizon Sydinvest Mellemlange is expected to generate 1.95 times less return on investment than Groenlandsbanken. But when comparing it to its historical volatility, Sydinvest Mellemlange Obligationer is 8.88 times less risky than Groenlandsbanken. It trades about 0.22 of its potential returns per unit of risk. Groenlandsbanken AS is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 62,000 in Groenlandsbanken AS on September 4, 2024 and sell it today you would earn a total of 7,500 from holding Groenlandsbanken AS or generate 12.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sydinvest Mellemlange Obligati vs. Groenlandsbanken AS
Performance |
| Timeline |
| Sydinvest Mellemlange |
| Groenlandsbanken |
Sydinvest Mellemlange and Groenlandsbanken Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sydinvest Mellemlange and Groenlandsbanken
The main advantage of trading using opposite Sydinvest Mellemlange and Groenlandsbanken positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sydinvest Mellemlange position performs unexpectedly, Groenlandsbanken 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 Groenlandsbanken will offset losses from the drop in Groenlandsbanken's long position.| Sydinvest Mellemlange vs. NTG Nordic Transport | Sydinvest Mellemlange vs. North Media AS | Sydinvest Mellemlange vs. Carnegie Wealth Management | Sydinvest Mellemlange vs. Nordfyns Bank AS |
| Groenlandsbanken vs. Skjern Bank AS | Groenlandsbanken vs. Lollands Bank | Groenlandsbanken vs. Ringkjoebing Landbobank AS | Groenlandsbanken vs. Kreditbanken 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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