Correlation Between BankInvest Emerging and Sparinvest Lange
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By analyzing existing cross correlation between BankInvest Emerging and Sparinvest Lange, you can compare the effects of market volatilities on BankInvest Emerging and Sparinvest Lange 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 BankInvest Emerging with a short position of Sparinvest Lange. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankInvest Emerging and Sparinvest Lange.
Diversification Opportunities for BankInvest Emerging and Sparinvest Lange
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BankInvest and Sparinvest is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding BankInvest Emerging and Sparinvest Lange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparinvest Lange and BankInvest Emerging 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 BankInvest Emerging are associated (or correlated) with Sparinvest Lange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparinvest Lange has no effect on the direction of BankInvest Emerging i.e., BankInvest Emerging and Sparinvest Lange go up and down completely randomly.
Pair Corralation between BankInvest Emerging and Sparinvest Lange
Assuming the 90 days trading horizon BankInvest Emerging is expected to generate 0.96 times more return on investment than Sparinvest Lange. However, BankInvest Emerging is 1.04 times less risky than Sparinvest Lange. It trades about 0.09 of its potential returns per unit of risk. Sparinvest Lange is currently generating about 0.06 per unit of risk. If you would invest 15,395 in BankInvest Emerging on September 5, 2024 and sell it today you would earn a total of 2,205 from holding BankInvest Emerging or generate 14.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
BankInvest Emerging vs. Sparinvest Lange
Performance |
| Timeline |
| BankInvest Emerging |
| Sparinvest Lange |
BankInvest Emerging and Sparinvest Lange Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BankInvest Emerging and Sparinvest Lange
The main advantage of trading using opposite BankInvest Emerging and Sparinvest Lange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankInvest Emerging position performs unexpectedly, Sparinvest Lange 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 Lange will offset losses from the drop in Sparinvest Lange's long position.| BankInvest Emerging vs. Sparinvest Value Emerging | BankInvest Emerging vs. Maj Invest Emerging | BankInvest Emerging vs. Sparinvest Lange | BankInvest Emerging vs. Investeringsforeningen Danske Invest |
| Sparinvest Lange vs. Jyske Invest Nye | Sparinvest Lange vs. Jyske Invest Korte | Sparinvest Lange vs. Jyske Invest Nye | Sparinvest Lange vs. Jyske Invest Virksomhedsobligationer |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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