Correlation Between DKIEUHUAKLDKK and Sparindex INDEX
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By analyzing existing cross correlation between Investeringsforeningen Danske Invest and Sparindex INDEX OMX, you can compare the effects of market volatilities on DKIEUHUAKLDKK and Sparindex INDEX 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 DKIEUHUAKLDKK with a short position of Sparindex INDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of DKIEUHUAKLDKK and Sparindex INDEX.
Diversification Opportunities for DKIEUHUAKLDKK and Sparindex INDEX
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DKIEUHUAKLDKK and Sparindex is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Investeringsforeningen Danske and Sparindex INDEX OMX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparindex INDEX OMX and DKIEUHUAKLDKK 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 Danske Invest are associated (or correlated) with Sparindex INDEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparindex INDEX OMX has no effect on the direction of DKIEUHUAKLDKK i.e., DKIEUHUAKLDKK and Sparindex INDEX go up and down completely randomly.
Pair Corralation between DKIEUHUAKLDKK and Sparindex INDEX
Assuming the 90 days trading horizon Investeringsforeningen Danske Invest is expected to generate 0.62 times more return on investment than Sparindex INDEX. However, Investeringsforeningen Danske Invest is 1.6 times less risky than Sparindex INDEX. It trades about 0.09 of its potential returns per unit of risk. Sparindex INDEX OMX is currently generating about 0.03 per unit of risk. If you would invest 18,749 in Investeringsforeningen Danske Invest on September 1, 2024 and sell it today you would earn a total of 2,781 from holding Investeringsforeningen Danske Invest or generate 14.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investeringsforeningen Danske vs. Sparindex INDEX OMX
Performance |
| Timeline |
| Investeringsforeningen |
| Sparindex INDEX OMX |
DKIEUHUAKLDKK and Sparindex INDEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DKIEUHUAKLDKK and Sparindex INDEX
The main advantage of trading using opposite DKIEUHUAKLDKK and Sparindex INDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DKIEUHUAKLDKK position performs unexpectedly, Sparindex INDEX 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 Sparindex INDEX will offset losses from the drop in Sparindex INDEX's long position.| DKIEUHUAKLDKK vs. Jyske Invest Nye | DKIEUHUAKLDKK vs. Jyske Invest Korte | DKIEUHUAKLDKK vs. Jyske Invest Nye | DKIEUHUAKLDKK vs. Jyske Invest Virksomhedsobligationer |
| Sparindex INDEX vs. Sparindex INDEX Stabile | Sparindex INDEX vs. Sparinvest Lange | Sparindex INDEX vs. Investeringsforeningen Danske Invest | Sparindex INDEX vs. Sparinv SICAV |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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