Correlation Between Sydbank A/S and Yamaha
Can any of the company-specific risk be diversified away by investing in both Sydbank A/S and Yamaha 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 Yamaha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sydbank AS and Yamaha, you can compare the effects of market volatilities on Sydbank A/S and Yamaha 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 Yamaha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sydbank A/S and Yamaha.
Diversification Opportunities for Sydbank A/S and Yamaha
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sydbank and Yamaha is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Sydbank AS and Yamaha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yamaha 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 Yamaha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yamaha has no effect on the direction of Sydbank A/S i.e., Sydbank A/S and Yamaha go up and down completely randomly.
Pair Corralation between Sydbank A/S and Yamaha
Assuming the 90 days horizon Sydbank AS is expected to generate 2.92 times more return on investment than Yamaha. However, Sydbank A/S is 2.92 times more volatile than Yamaha. It trades about 0.08 of its potential returns per unit of risk. Yamaha is currently generating about -0.05 per unit of risk. If you would invest 885.00 in Sydbank AS on August 24, 2024 and sell it today you would earn a total of 3,831 from holding Sydbank AS or generate 432.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sydbank AS vs. Yamaha
Performance |
| Timeline |
| Sydbank A/S |
| Yamaha |
Sydbank A/S and Yamaha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sydbank A/S and Yamaha
The main advantage of trading using opposite Sydbank A/S and Yamaha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sydbank A/S position performs unexpectedly, Yamaha 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 Yamaha will offset losses from the drop in Yamaha's long position.| Sydbank A/S vs. INDOFOOD AGRI RES | Sydbank A/S vs. AIR LIQUIDE ADR | Sydbank A/S vs. TreeHouse Foods | Sydbank A/S vs. Major Drilling Group |
| Yamaha vs. EHEALTH | Yamaha vs. Kaiser Aluminum | Yamaha vs. NORDHEALTH AS NK | Yamaha vs. Diamondrock Hospitality Co |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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