Correlation Between Nordinvestments and Sydbank AS

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

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

Diversification Opportunities for Nordinvestments and Sydbank AS

0.0

Correlation Coefficient

Nordinvestments  Sydbank AS

Pay attention - limited upside

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

Pair Corralation between Nordinvestments and Sydbank AS

If you would invest  33,580  in Sydbank AS on September 22, 2024 and sell it today you would earn a total of  2,340  from holding Sydbank AS or generate 6.97% return on investment over 90 days.

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

Nordinvestments AS  vs.  Sydbank AS

Nordinvestments AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nordinvestments AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Nordinvestments is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Sydbank AS

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Sydbank AS are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Sydbank AS may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Nordinvestments and Sydbank AS

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

The idea behind Nordinvestments AS and Sydbank AS 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.