Correlation Between Sydinvest Korte and BankInv Kort

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

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

Diversification Opportunities for Sydinvest Korte and BankInv Kort

-0.87

Correlation Coefficient

Sydinvest Korte  BankInv Kort

Pay attention - limited upside

The 3 months correlation between Sydinvest and BankInv is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Sydinvest Korte Obligationer and BankInv Kort HY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInv Kort HY and Sydinvest Korte 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 Sydinvest Korte Obligationer are associated (or correlated) with BankInv Kort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInv Kort HY has no effect on the direction of Sydinvest Korte i.e., Sydinvest Korte and BankInv Kort go up and down completely randomly.

Pair Corralation between Sydinvest Korte and BankInv Kort

Assuming the 90 days trading horizon Sydinvest Korte Obligationer is expected to under-perform the BankInv Kort. In addition to that, Sydinvest Korte is 1.62 times more volatile than BankInv Kort HY. It trades about -0.11 of its total potential returns per unit of risk. BankInv Kort HY is currently generating about 0.07 per unit of volatility. If you would invest  10,320  in BankInv Kort HY on December 28, 2024 and sell it today you would earn a total of  110.00  from holding BankInv Kort HY or generate 1.07% return on investment over 90 days.

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

Sydinvest Korte Obligationer  vs.  BankInv Kort HY

Sydinvest Korte Obli

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sydinvest Korte Obligationer has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Sydinvest Korte is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

BankInv Kort HY

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in BankInv Kort HY are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, BankInv Kort is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Sydinvest Korte and BankInv Kort

The main advantage of trading using opposite Sydinvest Korte and BankInv Kort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sydinvest Korte position performs unexpectedly, BankInv Kort 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 BankInv Kort will offset losses from the drop in BankInv Kort's long position.

The idea behind Sydinvest Korte Obligationer and BankInv Kort HY 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.

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 Money Managers module to screen money managers from public funds and ETFs managed around the world.