Correlation Between LED IBond and Sparinvest USA
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By analyzing existing cross correlation between LED iBond International and Sparinvest USA Small, you can compare the effects of market volatilities on LED IBond 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 LED IBond with a short position of Sparinvest USA. Check out your portfolio center. Please also check ongoing floating volatility patterns of LED IBond and Sparinvest USA.
Diversification Opportunities for LED IBond and Sparinvest USA
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between LED and Sparinvest is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding LED iBond International 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 LED IBond 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 LED iBond International 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 LED IBond i.e., LED IBond and Sparinvest USA go up and down completely randomly.
Pair Corralation between LED IBond and Sparinvest USA
Assuming the 90 days trading horizon LED iBond International is expected to generate 16.86 times more return on investment than Sparinvest USA. However, LED IBond is 16.86 times more volatile than Sparinvest USA Small. It trades about 0.22 of its potential returns per unit of risk. Sparinvest USA Small is currently generating about 0.25 per unit of risk. If you would invest 17.00 in LED iBond International on August 29, 2024 and sell it today you would earn a total of 16.00 from holding LED iBond International or generate 94.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LED iBond International vs. Sparinvest USA Small
Performance |
| Timeline |
| LED iBond International |
| Sparinvest USA Small |
LED IBond and Sparinvest USA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LED IBond and Sparinvest USA
The main advantage of trading using opposite LED IBond and Sparinvest USA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LED IBond 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.| LED IBond vs. Alm Brand | LED IBond vs. Sparinvest INDEX Globale | LED IBond vs. Bavarian Nordic | LED IBond vs. Investeringsselskabet Luxor AS |
| Sparinvest USA vs. Sparinvest Europa Growth | Sparinvest USA vs. Sparinvest INDEX Europa | Sparinvest USA vs. Sparinvest INDEX Hj | Sparinvest USA vs. Sparinvest SICAV Procedo |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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