Correlation Between Cboe UK and Sparebanken Vest
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By analyzing existing cross correlation between Cboe UK Consumer and Sparebanken Vest, you can compare the effects of market volatilities on Cboe UK and Sparebanken Vest 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 Cboe UK with a short position of Sparebanken Vest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and Sparebanken Vest.
Diversification Opportunities for Cboe UK and Sparebanken Vest
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cboe and Sparebanken is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and Sparebanken Vest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparebanken Vest and Cboe UK 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 Cboe UK Consumer are associated (or correlated) with Sparebanken Vest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparebanken Vest has no effect on the direction of Cboe UK i.e., Cboe UK and Sparebanken Vest go up and down completely randomly.
Pair Corralation between Cboe UK and Sparebanken Vest
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.63 times more return on investment than Sparebanken Vest. However, Cboe UK Consumer is 1.6 times less risky than Sparebanken Vest. It trades about 0.18 of its potential returns per unit of risk. Sparebanken Vest is currently generating about 0.07 per unit of risk. If you would invest 2,688,958 in Cboe UK Consumer on October 25, 2024 and sell it today you would earn a total of 597,151 from holding Cboe UK Consumer or generate 22.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.8% |
| Values | Daily Returns |
Cboe UK Consumer vs. Sparebanken Vest
Performance |
| Timeline |
Cboe UK and Sparebanken Vest Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
Sparebanken Vest
Pair trading matchups for Sparebanken Vest
Pair Trading with Cboe UK and Sparebanken Vest
The main advantage of trading using opposite Cboe UK and Sparebanken Vest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, Sparebanken Vest 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 Sparebanken Vest will offset losses from the drop in Sparebanken Vest's long position.| Cboe UK vs. Discover Financial Services | Cboe UK vs. Ally Financial | Cboe UK vs. Pentair PLC | Cboe UK vs. Systemair AB |
| Sparebanken Vest vs. Playtech Plc | Sparebanken Vest vs. Sartorius Stedim Biotech | Sparebanken Vest vs. Eneraqua Technologies PLC | Sparebanken Vest vs. Check Point Software |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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