Correlation Between Seraphim Space and Sydbank
Can any of the company-specific risk be diversified away by investing in both Seraphim Space 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 Seraphim Space and Sydbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seraphim Space Investment and Sydbank, you can compare the effects of market volatilities on Seraphim Space 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 Seraphim Space with a short position of Sydbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seraphim Space and Sydbank.
Diversification Opportunities for Seraphim Space and Sydbank
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Seraphim and Sydbank is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Seraphim Space Investment and Sydbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sydbank and Seraphim Space 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 Seraphim Space Investment 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 Seraphim Space i.e., Seraphim Space and Sydbank go up and down completely randomly.
Pair Corralation between Seraphim Space and Sydbank
Assuming the 90 days trading horizon Seraphim Space is expected to generate 1.35 times less return on investment than Sydbank. But when comparing it to its historical volatility, Seraphim Space Investment is 1.05 times less risky than Sydbank. It trades about 0.1 of its potential returns per unit of risk. Sydbank is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 33,069 in Sydbank on October 26, 2024 and sell it today you would earn a total of 4,651 from holding Sydbank or generate 14.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Seraphim Space Investment vs. Sydbank
Performance |
Timeline |
Seraphim Space Investment |
Sydbank |
Seraphim Space and Sydbank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Seraphim Space and Sydbank
The main advantage of trading using opposite Seraphim Space and Sydbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seraphim Space 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.Seraphim Space vs. First Majestic Silver | Seraphim Space vs. Eco Animal Health | Seraphim Space vs. CVS Health Corp | Seraphim Space vs. Elmos Semiconductor SE |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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