Correlation Between Coop Opsparing and Sydbank AS
Can any of the company-specific risk be diversified away by investing in both Coop Opsparing 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 Coop Opsparing and Sydbank AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coop Opsparing Moderat and Sydbank AS, you can compare the effects of market volatilities on Coop Opsparing 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 Coop Opsparing with a short position of Sydbank AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coop Opsparing and Sydbank AS.
Diversification Opportunities for Coop Opsparing and Sydbank AS
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Coop and Sydbank is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Coop Opsparing Moderat and Sydbank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sydbank AS and Coop Opsparing 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 Coop Opsparing Moderat 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 Coop Opsparing i.e., Coop Opsparing and Sydbank AS go up and down completely randomly.
Pair Corralation between Coop Opsparing and Sydbank AS
Assuming the 90 days trading horizon Coop Opsparing Moderat is expected to under-perform the Sydbank AS. But the stock apears to be less risky and, when comparing its historical volatility, Coop Opsparing Moderat is 2.68 times less risky than Sydbank AS. The stock trades about -0.23 of its potential returns per unit of risk. The Sydbank AS is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 35,360 in Sydbank AS on January 24, 2024 and sell it today you would earn a total of 1,400 from holding Sydbank AS or generate 3.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coop Opsparing Moderat vs. Sydbank AS
Performance |
| Timeline |
| Coop Opsparing Moderat |
| Sydbank AS |
Coop Opsparing and Sydbank AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coop Opsparing and Sydbank AS
The main advantage of trading using opposite Coop Opsparing and Sydbank AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coop Opsparing 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.| Coop Opsparing vs. Novo Nordisk AS | Coop Opsparing vs. Nordea Bank Abp | Coop Opsparing vs. DSV Panalpina AS | Coop Opsparing vs. AP Mller |
| Sydbank AS vs. Bavarian Nordic | Sydbank AS vs. DSV Panalpina AS | Sydbank AS vs. Vestas Wind Systems | Sydbank AS vs. Ambu AS |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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