Correlation Between Maj Invest and Sparinvest Lange
Specify exactly 2 symbols:
By analyzing existing cross correlation between Maj Invest Value 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
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Maj and Sparinvest is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Maj Invest Value 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 Value 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 Value is expected to generate 2.62 times more return on investment than Sparinvest Lange. However, Maj Invest is 2.62 times more volatile than Sparinvest Lange. It trades about 0.15 of its potential returns per unit of risk. Sparinvest Lange is currently generating about 0.1 per unit of risk. If you would invest 15,015 in Maj Invest Value on August 29, 2024 and sell it today you would earn a total of 4,741 from holding Maj Invest Value or generate 31.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maj Invest Value vs. Sparinvest Lange
Performance |
| Timeline |
| Maj Invest Value |
| 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 | 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |