Correlation Between Triad Group and Sydbank
Can any of the company-specific risk be diversified away by investing in both Triad Group and Sydbank 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 Triad Group and Sydbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Triad Group PLC and Sydbank, you can compare the effects of market volatilities on Triad Group and Sydbank 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 Triad Group with a short position of Sydbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triad Group and Sydbank.
Diversification Opportunities for Triad Group and Sydbank
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Triad and Sydbank is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Triad Group PLC and Sydbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sydbank and Triad Group 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 Triad Group PLC are associated (or correlated) with Sydbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sydbank has no effect on the direction of Triad Group i.e., Triad Group and Sydbank go up and down completely randomly.
Pair Corralation between Triad Group and Sydbank
Assuming the 90 days trading horizon Triad Group PLC is expected to under-perform the Sydbank. In addition to that, Triad Group is 2.01 times more volatile than Sydbank. It trades about -0.07 of its total potential returns per unit of risk. Sydbank is currently generating about 0.22 per unit of volatility. If you would invest 33,070 in Sydbank on September 2, 2024 and sell it today you would earn a total of 1,910 from holding Sydbank or generate 5.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Triad Group PLC vs. Sydbank
Performance |
| Timeline |
| Triad Group PLC |
| Sydbank |
Triad Group and Sydbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triad Group and Sydbank
The main advantage of trading using opposite Triad Group and Sydbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triad Group position performs unexpectedly, Sydbank 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 Sydbank will offset losses from the drop in Sydbank's long position.| Triad Group vs. Taylor Maritime Investments | Triad Group vs. The Mercantile Investment | Triad Group vs. Bankers Investment Trust | Triad Group vs. Beeks Trading |
| Sydbank vs. Uniper SE | Sydbank vs. Mulberry Group PLC | Sydbank vs. London Security Plc | Sydbank vs. Triad Group PLC |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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