Correlation Between Sydbank AS and PT Ace
Can any of the company-specific risk be diversified away by investing in both Sydbank AS and PT Ace 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 PT Ace into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sydbank AS and PT Ace Hardware, you can compare the effects of market volatilities on Sydbank AS and PT Ace 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 PT Ace. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sydbank AS and PT Ace.
Diversification Opportunities for Sydbank AS and PT Ace
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sydbank and 4AH1 is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Sydbank AS and PT Ace Hardware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Ace Hardware 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 PT Ace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Ace Hardware has no effect on the direction of Sydbank AS i.e., Sydbank AS and PT Ace go up and down completely randomly.
Pair Corralation between Sydbank AS and PT Ace
Assuming the 90 days horizon Sydbank AS is expected to generate 0.93 times more return on investment than PT Ace. However, Sydbank AS is 1.08 times less risky than PT Ace. It trades about 0.23 of its potential returns per unit of risk. PT Ace Hardware is currently generating about -0.02 per unit of risk. If you would invest 4,624 in Sydbank AS on September 15, 2024 and sell it today you would earn a total of 391.00 from holding Sydbank AS or generate 8.46% 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. PT Ace Hardware
Performance |
| Timeline |
| Sydbank AS |
| PT Ace Hardware |
Sydbank AS and PT Ace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sydbank AS and PT Ace
The main advantage of trading using opposite Sydbank AS and PT Ace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sydbank AS position performs unexpectedly, PT Ace 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 PT Ace will offset losses from the drop in PT Ace's long position.| Sydbank AS vs. POSBO UNSPADRS20YC1 | Sydbank AS vs. Postal Savings Bank | Sydbank AS vs. UTD OV BK LOC ADR1 | Sydbank AS vs. Superior Plus Corp |
| PT Ace vs. Leggett Platt Incorporated | PT Ace vs. Superior Plus Corp | PT Ace vs. SIVERS SEMICONDUCTORS AB | PT Ace vs. NorAm Drilling 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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