Correlation Between BK Variable and Naranja Eurostoxx
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By analyzing existing cross correlation between BK Variable Internacional and Naranja Eurostoxx 50, you can compare the effects of market volatilities on BK Variable and Naranja Eurostoxx 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 BK Variable with a short position of Naranja Eurostoxx. Check out your portfolio center. Please also check ongoing floating volatility patterns of BK Variable and Naranja Eurostoxx.
Diversification Opportunities for BK Variable and Naranja Eurostoxx
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between 0P0000120T and Naranja is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding BK Variable Internacional and Naranja Eurostoxx 50 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Naranja Eurostoxx and BK Variable 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 BK Variable Internacional are associated (or correlated) with Naranja Eurostoxx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Naranja Eurostoxx has no effect on the direction of BK Variable i.e., BK Variable and Naranja Eurostoxx go up and down completely randomly.
Pair Corralation between BK Variable and Naranja Eurostoxx
Assuming the 90 days trading horizon BK Variable Internacional is expected to generate 0.8 times more return on investment than Naranja Eurostoxx. However, BK Variable Internacional is 1.25 times less risky than Naranja Eurostoxx. It trades about 0.19 of its potential returns per unit of risk. Naranja Eurostoxx 50 is currently generating about -0.15 per unit of risk. If you would invest 1,683 in BK Variable Internacional on September 2, 2024 and sell it today you would earn a total of 53.00 from holding BK Variable Internacional or generate 3.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
BK Variable Internacional vs. Naranja Eurostoxx 50
Performance |
| Timeline |
| BK Variable Internacional |
| Naranja Eurostoxx |
BK Variable and Naranja Eurostoxx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BK Variable and Naranja Eurostoxx
The main advantage of trading using opposite BK Variable and Naranja Eurostoxx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BK Variable position performs unexpectedly, Naranja Eurostoxx 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 Naranja Eurostoxx will offset losses from the drop in Naranja Eurostoxx's long position.| BK Variable vs. Metrovacesa SA | BK Variable vs. Elecnor SA | BK Variable vs. Mapfre | BK Variable vs. Amper SA |
| Naranja Eurostoxx vs. Metrovacesa SA | Naranja Eurostoxx vs. Elecnor SA | Naranja Eurostoxx vs. Mapfre | Naranja Eurostoxx vs. Amper SA |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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