Correlation Between Tryg AS and Silkeborg
Can any of the company-specific risk be diversified away by investing in both Tryg AS and Silkeborg 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 Tryg AS and Silkeborg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tryg AS and Silkeborg IF Invest, you can compare the effects of market volatilities on Tryg AS and Silkeborg 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 Tryg AS with a short position of Silkeborg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tryg AS and Silkeborg.
Diversification Opportunities for Tryg AS and Silkeborg
Very good diversification
The 3 months correlation between Tryg and Silkeborg is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Tryg AS and Silkeborg IF Invest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silkeborg IF Invest and Tryg 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 Tryg AS are associated (or correlated) with Silkeborg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silkeborg IF Invest has no effect on the direction of Tryg AS i.e., Tryg AS and Silkeborg go up and down completely randomly.
Pair Corralation between Tryg AS and Silkeborg
Assuming the 90 days trading horizon Tryg AS is expected to under-perform the Silkeborg. In addition to that, Tryg AS is 1.34 times more volatile than Silkeborg IF Invest. It trades about -0.09 of its total potential returns per unit of risk. Silkeborg IF Invest is currently generating about 0.1 per unit of volatility. If you would invest 3,760 in Silkeborg IF Invest on November 3, 2024 and sell it today you would earn a total of 100.00 from holding Silkeborg IF Invest or generate 2.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tryg AS vs. Silkeborg IF Invest
Performance |
| Timeline |
| Tryg AS |
| Silkeborg IF Invest |
Tryg AS and Silkeborg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tryg AS and Silkeborg
The main advantage of trading using opposite Tryg AS and Silkeborg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tryg AS position performs unexpectedly, Silkeborg 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 Silkeborg will offset losses from the drop in Silkeborg's long position.The idea behind Tryg AS and Silkeborg IF Invest pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Silkeborg vs. PARKEN Sport Entertainment | Silkeborg vs. Aalborg Boldspilklub AS | Silkeborg vs. Broendbyernes IF Fodbold | Silkeborg vs. Strategic Investments 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Global Correlations Find global opportunities by holding instruments from different markets |