Correlation Between Bactiquant and Sparinvest INDEX
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By analyzing existing cross correlation between Bactiquant AS and Sparinvest INDEX Globale, you can compare the effects of market volatilities on Bactiquant and Sparinvest INDEX 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 Bactiquant with a short position of Sparinvest INDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bactiquant and Sparinvest INDEX.
Diversification Opportunities for Bactiquant and Sparinvest INDEX
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bactiquant and Sparinvest is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Bactiquant AS and Sparinvest INDEX Globale in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparinvest INDEX Globale and Bactiquant 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 Bactiquant AS are associated (or correlated) with Sparinvest INDEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparinvest INDEX Globale has no effect on the direction of Bactiquant i.e., Bactiquant and Sparinvest INDEX go up and down completely randomly.
Pair Corralation between Bactiquant and Sparinvest INDEX
Assuming the 90 days trading horizon Bactiquant AS is expected to under-perform the Sparinvest INDEX. In addition to that, Bactiquant is 5.92 times more volatile than Sparinvest INDEX Globale. It trades about -0.1 of its total potential returns per unit of risk. Sparinvest INDEX Globale is currently generating about 0.41 per unit of volatility. If you would invest 14,476 in Sparinvest INDEX Globale on September 3, 2024 and sell it today you would earn a total of 881.00 from holding Sparinvest INDEX Globale or generate 6.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bactiquant AS vs. Sparinvest INDEX Globale
Performance |
| Timeline |
| Bactiquant AS |
| Sparinvest INDEX Globale |
Bactiquant and Sparinvest INDEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bactiquant and Sparinvest INDEX
The main advantage of trading using opposite Bactiquant and Sparinvest INDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bactiquant position performs unexpectedly, Sparinvest INDEX 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 Sparinvest INDEX will offset losses from the drop in Sparinvest INDEX's long position.| Bactiquant vs. Carnegie Wealth Management | Bactiquant vs. Nordfyns Bank AS | Bactiquant vs. Kreditbanken AS | Bactiquant vs. Vestjysk Bank AS |
| Sparinvest INDEX vs. Sparinvest Lange | Sparinvest INDEX vs. Sparinvest Value Emerging | Sparinvest INDEX vs. Sparinvest Europa Growth | Sparinvest INDEX vs. Sparinvest INDEX Europa |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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