Correlation Between Sydbank A/S and Sugi Holdings
Can any of the company-specific risk be diversified away by investing in both Sydbank A/S and Sugi Holdings 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 Sugi Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sydbank AS and Sugi Holdings CoLtd, you can compare the effects of market volatilities on Sydbank A/S and Sugi Holdings 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 Sugi Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sydbank A/S and Sugi Holdings.
Diversification Opportunities for Sydbank A/S and Sugi Holdings
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sydbank and Sugi is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Sydbank AS and Sugi Holdings CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sugi Holdings CoLtd 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 Sugi Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sugi Holdings CoLtd has no effect on the direction of Sydbank A/S i.e., Sydbank A/S and Sugi Holdings go up and down completely randomly.
Pair Corralation between Sydbank A/S and Sugi Holdings
Assuming the 90 days horizon Sydbank A/S is expected to generate 18.67 times less return on investment than Sugi Holdings. In addition to that, Sydbank A/S is 1.05 times more volatile than Sugi Holdings CoLtd. It trades about 0.02 of its total potential returns per unit of risk. Sugi Holdings CoLtd is currently generating about 0.39 per unit of volatility. If you would invest 1,500 in Sugi Holdings CoLtd on November 5, 2024 and sell it today you would earn a total of 170.00 from holding Sugi Holdings CoLtd or generate 11.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sydbank AS vs. Sugi Holdings CoLtd
Performance |
| Timeline |
| Sydbank A/S |
| Sugi Holdings CoLtd |
Sydbank A/S and Sugi Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sydbank A/S and Sugi Holdings
The main advantage of trading using opposite Sydbank A/S and Sugi Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sydbank A/S position performs unexpectedly, Sugi Holdings 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 Sugi Holdings will offset losses from the drop in Sugi Holdings' long position.| Sydbank A/S vs. Altair Engineering | Sydbank A/S vs. Monument Mining Limited | Sydbank A/S vs. Aya Gold Silver | Sydbank A/S vs. Harmony Gold Mining |
| Sugi Holdings vs. UNIVMUSIC GRPADR050 | Sugi Holdings vs. Discover Financial Services | Sugi Holdings vs. CullenFrost Bankers | Sugi Holdings vs. UNIVERSAL MUSIC GROUP |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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