Correlation Between BAIEMVKL and Sparinvest Value
Can any of the company-specific risk be diversified away by investing in both BAIEMVKL and Sparinvest Value at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining BAIEMVKL and Sparinvest Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investeringsforeningen BankInvest and Sparinvest Value Bonds, you can compare the effects of market volatilities on BAIEMVKL and Sparinvest 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 BAIEMVKL with a short position of Sparinvest Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of BAIEMVKL and Sparinvest Value.
Diversification Opportunities for BAIEMVKL and Sparinvest Value
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BAIEMVKL and Sparinvest is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Investeringsforeningen BankInv and Sparinvest Value Bonds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparinvest Value Bonds and BAIEMVKL 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 Investeringsforeningen BankInvest are associated (or correlated) with Sparinvest Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparinvest Value Bonds has no effect on the direction of BAIEMVKL i.e., BAIEMVKL and Sparinvest Value go up and down completely randomly.
Pair Corralation between BAIEMVKL and Sparinvest Value
If you would invest (100.00) in Sparinvest Value Bonds on August 25, 2024 and sell it today you would earn a total of 100.00 from holding Sparinvest Value Bonds or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investeringsforeningen BankInv vs. Sparinvest Value Bonds
Performance |
| Timeline |
| Investeringsforeningen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sparinvest Value Bonds |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BAIEMVKL and Sparinvest Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BAIEMVKL and Sparinvest Value
The main advantage of trading using opposite BAIEMVKL and Sparinvest Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BAIEMVKL position performs unexpectedly, Sparinvest 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 Sparinvest Value will offset losses from the drop in Sparinvest Value's long position.| BAIEMVKL vs. Investeringsforeningen Bankinvest | BAIEMVKL vs. Sparinvest Lange | BAIEMVKL vs. Investeringsforeningen Danske Invest |
| Sparinvest Value vs. Investeringsforeningen Bankinvest | Sparinvest Value vs. Sparinvest Lange | Sparinvest Value vs. Investeringsforeningen Danske Invest |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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