Correlation Between Sydbank A/S and AM EAGLE
Can any of the company-specific risk be diversified away by investing in both Sydbank A/S and AM EAGLE 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 A/S and AM EAGLE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sydbank AS and AM EAGLE OUTFITTERS, you can compare the effects of market volatilities on Sydbank A/S and AM EAGLE 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 A/S with a short position of AM EAGLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sydbank A/S and AM EAGLE.
Diversification Opportunities for Sydbank A/S and AM EAGLE
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sydbank and AFG is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Sydbank AS and AM EAGLE OUTFITTERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AM EAGLE OUTFITTERS and Sydbank A/S 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 AM EAGLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AM EAGLE OUTFITTERS has no effect on the direction of Sydbank A/S i.e., Sydbank A/S and AM EAGLE go up and down completely randomly.
Pair Corralation between Sydbank A/S and AM EAGLE
Assuming the 90 days horizon Sydbank A/S is expected to generate 1.56 times less return on investment than AM EAGLE. But when comparing it to its historical volatility, Sydbank AS is 1.84 times less risky than AM EAGLE. It trades about 0.14 of its potential returns per unit of risk. AM EAGLE OUTFITTERS is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,760 in AM EAGLE OUTFITTERS on September 4, 2024 and sell it today you would earn a total of 130.00 from holding AM EAGLE OUTFITTERS or generate 7.39% 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. AM EAGLE OUTFITTERS
Performance |
| Timeline |
| Sydbank A/S |
| AM EAGLE OUTFITTERS |
Sydbank A/S and AM EAGLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sydbank A/S and AM EAGLE
The main advantage of trading using opposite Sydbank A/S and AM EAGLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sydbank A/S position performs unexpectedly, AM EAGLE 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 AM EAGLE will offset losses from the drop in AM EAGLE's long position.| Sydbank A/S vs. AM EAGLE OUTFITTERS | Sydbank A/S vs. Commercial Vehicle Group | Sydbank A/S vs. CarsalesCom | Sydbank A/S vs. RYU Apparel |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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