Correlation Between Maj Invest and Sparinvest Value
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By analyzing existing cross correlation between Maj Invest Value and Sparinvest Value Emerging, you can compare the effects of market volatilities on Maj Invest and Sparinvest Value 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 Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maj Invest and Sparinvest Value.
Diversification Opportunities for Maj Invest and Sparinvest Value
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Maj and Sparinvest is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Maj Invest Value and Sparinvest Value Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparinvest Value Emerging 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 Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparinvest Value Emerging has no effect on the direction of Maj Invest i.e., Maj Invest and Sparinvest Value go up and down completely randomly.
Pair Corralation between Maj Invest and Sparinvest Value
Assuming the 90 days trading horizon Maj Invest Value is expected to generate 1.07 times more return on investment than Sparinvest Value. However, Maj Invest is 1.07 times more volatile than Sparinvest Value Emerging. It trades about 0.15 of its potential returns per unit of risk. Sparinvest Value Emerging is currently generating about -0.1 per unit of risk. If you would invest 18,966 in Maj Invest Value on August 25, 2024 and sell it today you would earn a total of 697.00 from holding Maj Invest Value or generate 3.67% 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 Value Emerging
Performance |
| Timeline |
| Maj Invest Value |
| Sparinvest Value Emerging |
Maj Invest and Sparinvest Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maj Invest and Sparinvest Value
The main advantage of trading using opposite Maj Invest and Sparinvest Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maj Invest position performs unexpectedly, Sparinvest Value 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 Value will offset losses from the drop in Sparinvest Value's long position.| Maj Invest vs. Jyske Invest Nye | Maj Invest vs. Jyske Invest Korte | Maj Invest vs. Jyske Invest Nye | Maj Invest vs. Jyske Invest Virksomhedsobligationer |
| Sparinvest Value vs. Jyske Invest Nye | Sparinvest Value vs. Jyske Invest Korte | Sparinvest Value vs. Jyske Invest Nye | Sparinvest Value vs. Jyske Invest Virksomhedsobligationer |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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