Correlation Between BankInvest Emerging and Sparinv SICAV
Specify exactly 2 symbols:
By analyzing existing cross correlation between BankInvest Emerging and Sparinv SICAV, you can compare the effects of market volatilities on BankInvest Emerging and Sparinv SICAV 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 Sparinv SICAV. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankInvest Emerging and Sparinv SICAV.
Diversification Opportunities for BankInvest Emerging and Sparinv SICAV
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BankInvest and Sparinv is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding BankInvest Emerging and Sparinv SICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparinv SICAV 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 Sparinv SICAV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparinv SICAV has no effect on the direction of BankInvest Emerging i.e., BankInvest Emerging and Sparinv SICAV go up and down completely randomly.
Pair Corralation between BankInvest Emerging and Sparinv SICAV
Assuming the 90 days trading horizon BankInvest Emerging is expected to generate 1.93 times less return on investment than Sparinv SICAV. But when comparing it to its historical volatility, BankInvest Emerging is 2.74 times less risky than Sparinv SICAV. It trades about 0.08 of its potential returns per unit of risk. Sparinv SICAV is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 24,450 in Sparinv SICAV on November 2, 2024 and sell it today you would earn a total of 5,720 from holding Sparinv SICAV or generate 23.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.54% |
| Values | Daily Returns |
BankInvest Emerging vs. Sparinv SICAV
Performance |
| Timeline |
| BankInvest Emerging |
| Sparinv SICAV |
BankInvest Emerging and Sparinv SICAV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BankInvest Emerging and Sparinv SICAV
The main advantage of trading using opposite BankInvest Emerging and Sparinv SICAV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankInvest Emerging position performs unexpectedly, Sparinv SICAV 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 Sparinv SICAV will offset losses from the drop in Sparinv SICAV's long position.| BankInvest Emerging vs. BankInvest Emerging | BankInvest Emerging vs. BankInvest Lange Danske | BankInvest Emerging vs. BankInvest Hjt | BankInvest Emerging vs. BankInvest Danske |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |