Correlation Between Ikigai Ventures and Sydbank

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

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

Diversification Opportunities for Ikigai Ventures and Sydbank

0.0

Correlation Coefficient

Ikigai Ventures  Sydbank

Pay attention - limited upside

The 3 months correlation between Ikigai and Sydbank is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ikigai Ventures and Sydbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sydbank and Ikigai Ventures 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 Ikigai Ventures 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 Ikigai Ventures i.e., Ikigai Ventures and Sydbank go up and down completely randomly.

Pair Corralation between Ikigai Ventures and Sydbank

Assuming the 90 days trading horizon Ikigai Ventures is expected to under-perform the Sydbank. But the stock apears to be less risky and, when comparing its historical volatility, Ikigai Ventures is 5.4 times less risky than Sydbank. The stock trades about -0.08 of its potential returns per unit of risk. The Sydbank is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  27,305  in Sydbank on October 9, 2024 and sell it today you would earn a total of  11,575  from holding Sydbank or generate 42.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Ikigai Ventures  vs.  Sydbank

Ikigai Ventures

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ikigai Ventures has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Ikigai Ventures is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Sydbank

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sydbank are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Sydbank unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ikigai Ventures and Sydbank

The main advantage of trading using opposite Ikigai Ventures and Sydbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ikigai Ventures 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 Ikigai Ventures 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.