Correlation Between Maj Invest and Sparinvest INDEX
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By analyzing existing cross correlation between Maj Invest Value and Sparinvest INDEX Mellem, you can compare the effects of market volatilities on Maj Invest and Sparinvest 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 Maj Invest with a short position of Sparinvest INDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maj Invest and Sparinvest INDEX.
Diversification Opportunities for Maj Invest and Sparinvest INDEX
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Maj and Sparinvest is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Maj Invest Value and Sparinvest INDEX Mellem in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparinvest INDEX Mellem 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 INDEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparinvest INDEX Mellem has no effect on the direction of Maj Invest i.e., Maj Invest and Sparinvest INDEX go up and down completely randomly.
Pair Corralation between Maj Invest and Sparinvest INDEX
Assuming the 90 days trading horizon Maj Invest Value is expected to generate 1.31 times more return on investment than Sparinvest INDEX. However, Maj Invest is 1.31 times more volatile than Sparinvest INDEX Mellem. It trades about 0.39 of its potential returns per unit of risk. Sparinvest INDEX Mellem is currently generating about 0.18 per unit of risk. If you would invest 19,316 in Maj Invest Value on November 4, 2024 and sell it today you would earn a total of 952.00 from holding Maj Invest Value or generate 4.93% 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 INDEX Mellem
Performance |
| Timeline |
| Maj Invest Value |
| Sparinvest INDEX Mellem |
Maj Invest and Sparinvest INDEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maj Invest and Sparinvest INDEX
The main advantage of trading using opposite Maj Invest and Sparinvest INDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maj Invest position performs unexpectedly, Sparinvest 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 Sparinvest INDEX will offset losses from the drop in Sparinvest INDEX's long position.| Maj Invest vs. Maj Invest | Maj Invest vs. Maj Invest Emerging | Maj Invest vs. Maj Invest | Maj Invest vs. Sparinvest Lange |
| Sparinvest INDEX vs. Sparinvest Lange | Sparinvest INDEX vs. Sparinvest Value Emerging | Sparinvest INDEX vs. Sparinvest INDEX Europa | Sparinvest INDEX vs. Sparinvest INDEX Hj |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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