Correlation Between Sparindex INDEX and DKIEUHUAKLDKK
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By analyzing existing cross correlation between Sparindex INDEX OMX and Investeringsforeningen Danske Invest, you can compare the effects of market volatilities on Sparindex INDEX and DKIEUHUAKLDKK 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 Sparindex INDEX with a short position of DKIEUHUAKLDKK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sparindex INDEX and DKIEUHUAKLDKK.
Diversification Opportunities for Sparindex INDEX and DKIEUHUAKLDKK
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sparindex and DKIEUHUAKLDKK is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Sparindex INDEX OMX and Investeringsforeningen Danske in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investeringsforeningen and Sparindex INDEX 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 Sparindex INDEX OMX are associated (or correlated) with DKIEUHUAKLDKK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investeringsforeningen has no effect on the direction of Sparindex INDEX i.e., Sparindex INDEX and DKIEUHUAKLDKK go up and down completely randomly.
Pair Corralation between Sparindex INDEX and DKIEUHUAKLDKK
Assuming the 90 days trading horizon Sparindex INDEX OMX is expected to under-perform the DKIEUHUAKLDKK. In addition to that, Sparindex INDEX is 3.11 times more volatile than Investeringsforeningen Danske Invest. It trades about -0.06 of its total potential returns per unit of risk. Investeringsforeningen Danske Invest is currently generating about 0.49 per unit of volatility. If you would invest 22,390 in Investeringsforeningen Danske Invest on November 27, 2024 and sell it today you would earn a total of 1,060 from holding Investeringsforeningen Danske Invest or generate 4.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sparindex INDEX OMX vs. Investeringsforeningen Danske
Performance |
| Timeline |
| Sparindex INDEX OMX |
| Investeringsforeningen |
Sparindex INDEX and DKIEUHUAKLDKK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sparindex INDEX and DKIEUHUAKLDKK
The main advantage of trading using opposite Sparindex INDEX and DKIEUHUAKLDKK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sparindex INDEX position performs unexpectedly, DKIEUHUAKLDKK 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 DKIEUHUAKLDKK will offset losses from the drop in DKIEUHUAKLDKK's long position.| Sparindex INDEX vs. Sparindex INDEX Stabile | Sparindex INDEX vs. Sparinvest Lange | Sparindex INDEX vs. Investeringsforeningen Danske Invest | Sparindex INDEX vs. Sparinv SICAV |
| DKIEUHUAKLDKK vs. Sparinvest Lange | DKIEUHUAKLDKK vs. Sparinv SICAV | DKIEUHUAKLDKK vs. Sparinvest Value Emerging | DKIEUHUAKLDKK vs. Sparinvest Europa Growth |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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