Correlation Between Sydinvest Korte and Carnegie Wealth

Can any of the company-specific risk be diversified away by investing in both Sydinvest Korte and Carnegie Wealth 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 Carnegie Wealth 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 Carnegie Wealth Management, you can compare the effects of market volatilities on Sydinvest Korte and Carnegie Wealth 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 Carnegie Wealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sydinvest Korte and Carnegie Wealth.

Diversification Opportunities for Sydinvest Korte and Carnegie Wealth

-0.28

Correlation Coefficient

Sydinvest Korte  Carnegie Wealth

Very good diversification

The 3 months correlation between Sydinvest and Carnegie is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Sydinvest Korte Obligationer and Carnegie Wealth Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carnegie Wealth Mana 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 Carnegie Wealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carnegie Wealth Mana has no effect on the direction of Sydinvest Korte i.e., Sydinvest Korte and Carnegie Wealth go up and down completely randomly.

Pair Corralation between Sydinvest Korte and Carnegie Wealth

Assuming the 90 days trading horizon Sydinvest Korte Obligationer is expected to generate 0.55 times more return on investment than Carnegie Wealth. However, Sydinvest Korte Obligationer is 1.81 times less risky than Carnegie Wealth. It trades about 0.03 of its potential returns per unit of risk. Carnegie Wealth Management is currently generating about -0.01 per unit of risk. If you would invest  9,744  in Sydinvest Korte Obligationer on October 7, 2024 and sell it today you would earn a total of  106.00  from holding Sydinvest Korte Obligationer or generate 1.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Sydinvest Korte Obligationer  vs.  Carnegie Wealth Management

Sydinvest Korte Obli

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sydinvest Korte Obligationer are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Sydinvest Korte is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Carnegie Wealth Mana

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Carnegie Wealth Management has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward indicators, Carnegie Wealth is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Sydinvest Korte and Carnegie Wealth

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

The idea behind Sydinvest Korte Obligationer and Carnegie Wealth Management 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.