Correlation Between Vestas Wind and Sydbank AS
Can any of the company-specific risk be diversified away by investing in both Vestas Wind and Sydbank AS 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 Vestas Wind and Sydbank AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vestas Wind Systems and Sydbank AS, you can compare the effects of market volatilities on Vestas Wind and Sydbank AS 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 Vestas Wind with a short position of Sydbank AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vestas Wind and Sydbank AS.
Diversification Opportunities for Vestas Wind and Sydbank AS
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vestas and Sydbank is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Vestas Wind Systems and Sydbank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sydbank AS and Vestas Wind 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 Vestas Wind Systems are associated (or correlated) with Sydbank AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sydbank AS has no effect on the direction of Vestas Wind i.e., Vestas Wind and Sydbank AS go up and down completely randomly.
Pair Corralation between Vestas Wind and Sydbank AS
Assuming the 90 days trading horizon Vestas Wind Systems is expected to under-perform the Sydbank AS. In addition to that, Vestas Wind is 2.04 times more volatile than Sydbank AS. It trades about -0.07 of its total potential returns per unit of risk. Sydbank AS is currently generating about 0.02 per unit of volatility. If you would invest 38,100 in Sydbank AS on November 3, 2024 and sell it today you would earn a total of 120.00 from holding Sydbank AS or generate 0.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vestas Wind Systems vs. Sydbank AS
Performance |
| Timeline |
| Vestas Wind Systems |
| Sydbank AS |
Vestas Wind and Sydbank AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vestas Wind and Sydbank AS
The main advantage of trading using opposite Vestas Wind and Sydbank AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vestas Wind position performs unexpectedly, Sydbank AS 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 AS will offset losses from the drop in Sydbank AS's long position.| Vestas Wind vs. Orsted AS | Vestas Wind vs. Danske Bank AS | Vestas Wind vs. Bavarian Nordic | Vestas Wind vs. DSV Panalpina AS |
| Sydbank AS vs. Jyske Bank AS | Sydbank AS vs. Tryg AS | Sydbank AS vs. FLSmidth Co | Sydbank AS vs. Nordea Bank Abp |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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