Correlation Between BankInvest Optima and Sparinvest USA
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By analyzing existing cross correlation between BankInvest Optima 30 and Sparinvest USA Small, you can compare the effects of market volatilities on BankInvest Optima and Sparinvest USA 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 Optima with a short position of Sparinvest USA. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankInvest Optima and Sparinvest USA.
Diversification Opportunities for BankInvest Optima and Sparinvest USA
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between BankInvest and Sparinvest is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding BankInvest Optima 30 and Sparinvest USA Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparinvest USA Small and BankInvest Optima 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 Optima 30 are associated (or correlated) with Sparinvest USA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparinvest USA Small has no effect on the direction of BankInvest Optima i.e., BankInvest Optima and Sparinvest USA go up and down completely randomly.
Pair Corralation between BankInvest Optima and Sparinvest USA
Assuming the 90 days trading horizon BankInvest Optima is expected to generate 5.42 times less return on investment than Sparinvest USA. But when comparing it to its historical volatility, BankInvest Optima 30 is 3.51 times less risky than Sparinvest USA. It trades about 0.17 of its potential returns per unit of risk. Sparinvest USA Small is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 12,901 in Sparinvest USA Small on August 29, 2024 and sell it today you would earn a total of 1,439 from holding Sparinvest USA Small or generate 11.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BankInvest Optima 30 vs. Sparinvest USA Small
Performance |
| Timeline |
| BankInvest Optima |
| Sparinvest USA Small |
BankInvest Optima and Sparinvest USA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BankInvest Optima and Sparinvest USA
The main advantage of trading using opposite BankInvest Optima and Sparinvest USA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankInvest Optima position performs unexpectedly, Sparinvest USA 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 USA will offset losses from the drop in Sparinvest USA's long position.| BankInvest Optima vs. MapsPeople AS | BankInvest Optima vs. Penneo AS | BankInvest Optima vs. Dataproces Group AS | BankInvest Optima vs. Orderyoyo AS |
| Sparinvest USA vs. Jyske Invest Nye | Sparinvest USA vs. Jyske Invest Korte | Sparinvest USA vs. Jyske Invest Nye | Sparinvest USA 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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