Correlation Between Maj Invest and Sparinv SICAV
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By analyzing existing cross correlation between Maj Invest Value and Sparinv SICAV, you can compare the effects of market volatilities on Maj Invest and Sparinv SICAV 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 Sparinv SICAV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maj Invest and Sparinv SICAV.
Diversification Opportunities for Maj Invest and Sparinv SICAV
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Maj and Sparinv is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Maj Invest Value and Sparinv SICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparinv SICAV 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 Sparinv SICAV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparinv SICAV has no effect on the direction of Maj Invest i.e., Maj Invest and Sparinv SICAV go up and down completely randomly.
Pair Corralation between Maj Invest and Sparinv SICAV
Assuming the 90 days trading horizon Maj Invest Value is expected to generate 0.85 times more return on investment than Sparinv SICAV. However, Maj Invest Value is 1.18 times less risky than Sparinv SICAV. It trades about 0.11 of its potential returns per unit of risk. Sparinv SICAV is currently generating about 0.06 per unit of risk. If you would invest 13,775 in Maj Invest Value on November 19, 2024 and sell it today you would earn a total of 6,449 from holding Maj Invest Value or generate 46.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 97.97% |
| Values | Daily Returns |
Maj Invest Value vs. Sparinv SICAV
Performance |
| Timeline |
| Maj Invest Value |
| Sparinv SICAV |
Maj Invest and Sparinv SICAV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maj Invest and Sparinv SICAV
The main advantage of trading using opposite Maj Invest and Sparinv SICAV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maj Invest position performs unexpectedly, Sparinv SICAV 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 Sparinv SICAV will offset losses from the drop in Sparinv SICAV's long position.| Maj Invest vs. Maj Invest | Maj Invest vs. Maj Invest | Maj Invest vs. Sparinvest Lange | Maj Invest vs. Investeringsforeningen Danske Invest |
| Sparinv SICAV vs. Sparindex INDEX OMX | Sparinv SICAV vs. C WorldWide Globale | Sparinv SICAV vs. Investin Othania | Sparinv SICAV 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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