Correlation Between BAIGAI and Sparinv SICAV
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By analyzing existing cross correlation between Investeringsforeningen Bankinvest and Sparinv SICAV, you can compare the effects of market volatilities on BAIGAI 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 BAIGAI with a short position of Sparinv SICAV. Check out your portfolio center. Please also check ongoing floating volatility patterns of BAIGAI and Sparinv SICAV.
Diversification Opportunities for BAIGAI and Sparinv SICAV
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between BAIGAI and Sparinv is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Investeringsforeningen Bankinv and Sparinv SICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparinv SICAV and BAIGAI 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 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 BAIGAI i.e., BAIGAI and Sparinv SICAV go up and down completely randomly.
Pair Corralation between BAIGAI and Sparinv SICAV
Assuming the 90 days trading horizon Investeringsforeningen Bankinvest is expected to generate 0.84 times more return on investment than Sparinv SICAV. However, Investeringsforeningen Bankinvest is 1.19 times less risky than Sparinv SICAV. It trades about 0.1 of its potential returns per unit of risk. Sparinv SICAV is currently generating about 0.06 per unit of risk. If you would invest 10,099 in Investeringsforeningen Bankinvest on September 3, 2024 and sell it today you would earn a total of 4,394 from holding Investeringsforeningen Bankinvest or generate 43.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 94.15% |
| Values | Daily Returns |
Investeringsforeningen Bankinv vs. Sparinv SICAV
Performance |
| Timeline |
| Investeringsforeningen |
| Sparinv SICAV |
BAIGAI and Sparinv SICAV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BAIGAI and Sparinv SICAV
The main advantage of trading using opposite BAIGAI and Sparinv SICAV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BAIGAI 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.| BAIGAI vs. Sparinvest Lange | BAIGAI vs. Investeringsforeningen Danske Invest | BAIGAI vs. Sparinv SICAV | BAIGAI vs. Sparinvest Value Emerging |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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