Correlation Between Sparindex INDEX and Sydbank AS
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By analyzing existing cross correlation between Sparindex INDEX Stabile and Sydbank AS, you can compare the effects of market volatilities on Sparindex INDEX 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 Sparindex INDEX with a short position of Sydbank AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sparindex INDEX and Sydbank AS.
Diversification Opportunities for Sparindex INDEX and Sydbank AS
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sparindex and Sydbank is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Sparindex INDEX Stabile and Sydbank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sydbank AS and Sparindex INDEX 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 Sparindex INDEX Stabile 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 Sparindex INDEX i.e., Sparindex INDEX and Sydbank AS go up and down completely randomly.
Pair Corralation between Sparindex INDEX and Sydbank AS
Assuming the 90 days trading horizon Sparindex INDEX is expected to generate 13.17 times less return on investment than Sydbank AS. But when comparing it to its historical volatility, Sparindex INDEX Stabile is 6.78 times less risky than Sydbank AS. It trades about 0.03 of its potential returns per unit of risk. Sydbank AS is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 35,704 in Sydbank AS on January 20, 2024 and sell it today you would earn a total of 496.00 from holding Sydbank AS or generate 1.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sparindex INDEX Stabile vs. Sydbank AS
Performance |
| Timeline |
| Sparindex INDEX Stabile |
| Sydbank AS |
Sparindex INDEX and Sydbank AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sparindex INDEX and Sydbank AS
The main advantage of trading using opposite Sparindex INDEX and Sydbank AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sparindex INDEX 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.| Sparindex INDEX vs. Jyske Invest Nye | Sparindex INDEX vs. Jyske Invest Nye | Sparindex INDEX vs. Jyske Invest Hjt | Sparindex INDEX vs. Jyske Invest Lange |
| Sydbank AS vs. Jyske Bank AS | Sydbank AS vs. Tryg AS | Sydbank AS vs. FLSmidth Co | Sydbank AS vs. Nordea Bank Abp |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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