Correlation Between Sydinvest Virksomhedsoblig and Sparinvest Europa

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

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

Diversification Opportunities for Sydinvest Virksomhedsoblig and Sparinvest Europa

-0.33

Correlation Coefficient

Sydinvest Virksomhedsoblig  Sparinvest Europa

Very good diversification

The 3 months correlation between Sydinvest and Sparinvest is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Sydinvest Virksomhedsobligatio and Sparinvest Europa Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparinvest Europa Growth and Sydinvest Virksomhedsoblig 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 Virksomhedsobligationer HY are associated (or correlated) with Sparinvest Europa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparinvest Europa Growth has no effect on the direction of Sydinvest Virksomhedsoblig i.e., Sydinvest Virksomhedsoblig and Sparinvest Europa go up and down completely randomly.

Pair Corralation between Sydinvest Virksomhedsoblig and Sparinvest Europa

Assuming the 90 days trading horizon Sydinvest Virksomhedsobligationer HY is expected to generate 0.08 times more return on investment than Sparinvest Europa. However, Sydinvest Virksomhedsobligationer HY is 12.16 times less risky than Sparinvest Europa. It trades about 0.1 of its potential returns per unit of risk. Sparinvest Europa Growth is currently generating about -0.24 per unit of risk. If you would invest  8,754  in Sydinvest Virksomhedsobligationer HY on October 7, 2024 and sell it today you would earn a total of  10.00  from holding Sydinvest Virksomhedsobligationer HY or generate 0.11% return on investment over 90 days.

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

Sydinvest Virksomhedsobligatio  vs.  Sparinvest Europa Growth

Sydinvest Virksomhedsoblig

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sydinvest Virksomhedsobligationer HY are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Sydinvest Virksomhedsoblig is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Sparinvest Europa Growth

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sparinvest Europa Growth has generated negative risk-adjusted returns adding no value to fund investors. Despite quite persistent basic indicators, Sparinvest Europa is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Sydinvest Virksomhedsoblig and Sparinvest Europa

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

The idea behind Sydinvest Virksomhedsobligationer HY and Sparinvest Europa Growth 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..