Correlation Between Maj Invest and Sparinvest Lange
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By analyzing existing cross correlation between Maj Invest and Sparinvest Lange, you can compare the effects of market volatilities on Maj Invest and Sparinvest Lange 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 Maj Invest with a short position of Sparinvest Lange. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maj Invest and Sparinvest Lange.
Diversification Opportunities for Maj Invest and Sparinvest Lange
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Maj and Sparinvest is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Maj Invest and Sparinvest Lange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparinvest Lange and Maj Invest 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 Maj Invest are associated (or correlated) with Sparinvest Lange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparinvest Lange has no effect on the direction of Maj Invest i.e., Maj Invest and Sparinvest Lange go up and down completely randomly.
Pair Corralation between Maj Invest and Sparinvest Lange
Assuming the 90 days trading horizon Maj Invest is expected to under-perform the Sparinvest Lange. In addition to that, Maj Invest is 5.05 times more volatile than Sparinvest Lange. It trades about -0.04 of its total potential returns per unit of risk. Sparinvest Lange is currently generating about 0.1 per unit of volatility. If you would invest 8,898 in Sparinvest Lange on August 29, 2024 and sell it today you would earn a total of 650.00 from holding Sparinvest Lange or generate 7.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maj Invest vs. Sparinvest Lange
Performance |
| Timeline |
| Maj Invest |
| Sparinvest Lange |
Maj Invest and Sparinvest Lange Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maj Invest and Sparinvest Lange
The main advantage of trading using opposite Maj Invest and Sparinvest Lange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maj Invest position performs unexpectedly, Sparinvest Lange 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 Lange will offset losses from the drop in Sparinvest Lange's long position.| Maj Invest vs. Maj Invest Value | Maj Invest vs. Maj Invest | Maj Invest vs. Sparinvest Lange | Maj Invest vs. Investeringsforeningen Danske Invest |
| Sparinvest Lange vs. Investeringsforeningen Danske Invest | Sparinvest Lange vs. Sparinv SICAV | Sparinvest Lange vs. Investeringsforeningen Danske Invest |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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