Correlation Between Sparindex INDEX and BankInvest Value
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By analyzing existing cross correlation between Sparindex INDEX Bredygtige and BankInvest Value Globale, you can compare the effects of market volatilities on Sparindex INDEX and BankInvest Value 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 BankInvest Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sparindex INDEX and BankInvest Value.
Diversification Opportunities for Sparindex INDEX and BankInvest Value
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sparindex and BankInvest is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Sparindex INDEX Bredygtige and BankInvest Value Globale in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInvest Value Globale 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 Bredygtige are associated (or correlated) with BankInvest Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInvest Value Globale has no effect on the direction of Sparindex INDEX i.e., Sparindex INDEX and BankInvest Value go up and down completely randomly.
Pair Corralation between Sparindex INDEX and BankInvest Value
Assuming the 90 days trading horizon Sparindex INDEX Bredygtige is expected to under-perform the BankInvest Value. In addition to that, Sparindex INDEX is 1.04 times more volatile than BankInvest Value Globale. It trades about -0.09 of its total potential returns per unit of risk. BankInvest Value Globale is currently generating about 0.06 per unit of volatility. If you would invest 10,130 in BankInvest Value Globale on October 4, 2024 and sell it today you would earn a total of 215.00 from holding BankInvest Value Globale or generate 2.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 86.67% |
Values | Daily Returns |
Sparindex INDEX Bredygtige vs. BankInvest Value Globale
Performance |
Timeline |
Sparindex INDEX Bred |
BankInvest Value Globale |
Sparindex INDEX and BankInvest Value Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sparindex INDEX and BankInvest Value
The main advantage of trading using opposite Sparindex INDEX and BankInvest Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sparindex INDEX position performs unexpectedly, BankInvest Value 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 BankInvest Value will offset losses from the drop in BankInvest Value's long position.Sparindex INDEX vs. Scandinavian Tobacco Group | Sparindex INDEX vs. Strategic Investments AS | Sparindex INDEX vs. Djurslands Bank | Sparindex INDEX vs. FOM Technologies AS |
BankInvest Value vs. Novo Nordisk AS | BankInvest Value vs. Nordea Bank Abp | BankInvest Value vs. DSV Panalpina AS | BankInvest Value vs. AP Mller |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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