Correlation Between Datalogic and Sydbank

Can any of the company-specific risk be diversified away by investing in both Datalogic 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 Datalogic and Sydbank into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Datalogic and Sydbank, you can compare the effects of market volatilities on Datalogic 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 Datalogic with a short position of Sydbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datalogic and Sydbank.

Diversification Opportunities for Datalogic and Sydbank

-0.39

Correlation Coefficient

Datalogic  Sydbank

Very good diversification

The 3 months correlation between Datalogic and Sydbank is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Datalogic and Sydbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sydbank and Datalogic 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 Datalogic 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 Datalogic i.e., Datalogic and Sydbank go up and down completely randomly.

Pair Corralation between Datalogic and Sydbank

Assuming the 90 days trading horizon Datalogic is expected to under-perform the Sydbank. In addition to that, Datalogic is 1.54 times more volatile than Sydbank. It trades about -0.06 of its total potential returns per unit of risk. Sydbank is currently generating about 0.22 per unit of volatility. If you would invest  35,758  in Sydbank on December 26, 2024 and sell it today you would earn a total of  7,342  from holding Sydbank or generate 20.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Datalogic  vs.  Sydbank

Datalogic

Risk-Adjusted Performance

Very Weak

Over the last 90 days Datalogic has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Sydbank

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Sydbank are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Sydbank unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Datalogic and Sydbank

The main advantage of trading using opposite Datalogic and Sydbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Datalogic 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.

The idea behind Datalogic and Sydbank 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.

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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.