Correlation Between Sydbank AS and Chalice Mining

Can any of the company-specific risk be diversified away by investing in both Sydbank AS and Chalice Mining 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 Sydbank AS and Chalice Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sydbank AS and Chalice Mining Limited, you can compare the effects of market volatilities on Sydbank AS and Chalice Mining 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 Sydbank AS with a short position of Chalice Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sydbank AS and Chalice Mining.

Diversification Opportunities for Sydbank AS and Chalice Mining

0.78

Correlation Coefficient

Sydbank AS  Chalice Mining

Poor diversification

The 3 months correlation between Sydbank and Chalice is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Sydbank AS and Chalice Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chalice Mining and Sydbank AS 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 Sydbank AS are associated (or correlated) with Chalice Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chalice Mining has no effect on the direction of Sydbank AS i.e., Sydbank AS and Chalice Mining go up and down completely randomly.

Pair Corralation between Sydbank AS and Chalice Mining

Assuming the 90 days horizon Sydbank AS is expected to generate 4.45 times less return on investment than Chalice Mining. But when comparing it to its historical volatility, Sydbank AS is 2.91 times less risky than Chalice Mining. It trades about 0.09 of its potential returns per unit of risk. Chalice Mining Limited is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  61.00  in Chalice Mining Limited on May 5, 2025 and sell it today you would earn a total of  26.00  from holding Chalice Mining Limited or generate 42.62% return on investment over 90 days.

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

Sydbank AS  vs.  Chalice Mining Limited

Sydbank AS

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sydbank AS are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Sydbank AS may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Chalice Mining

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Chalice Mining Limited are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Chalice Mining reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sydbank AS and Chalice Mining

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

The idea behind Sydbank AS and Chalice Mining Limited 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.