Correlation Between Sparinvest Europa and Sparinvest USA
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By analyzing existing cross correlation between Sparinvest Europa Growth and Sparinvest USA Small, you can compare the effects of market volatilities on Sparinvest Europa and Sparinvest USA 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 Sparinvest Europa with a short position of Sparinvest USA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sparinvest Europa and Sparinvest USA.
Diversification Opportunities for Sparinvest Europa and Sparinvest USA
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sparinvest and Sparinvest is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Sparinvest Europa Growth and Sparinvest USA Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparinvest USA Small and Sparinvest Europa 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 Sparinvest Europa Growth are associated (or correlated) with Sparinvest USA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparinvest USA Small has no effect on the direction of Sparinvest Europa i.e., Sparinvest Europa and Sparinvest USA go up and down completely randomly.
Pair Corralation between Sparinvest Europa and Sparinvest USA
Assuming the 90 days trading horizon Sparinvest Europa Growth is expected to under-perform the Sparinvest USA. But the fund apears to be less risky and, when comparing its historical volatility, Sparinvest Europa Growth is 1.44 times less risky than Sparinvest USA. The fund trades about -0.01 of its potential returns per unit of risk. The Sparinvest USA Small is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 11,907 in Sparinvest USA Small on August 29, 2024 and sell it today you would earn a total of 2,433 from holding Sparinvest USA Small or generate 20.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sparinvest Europa Growth vs. Sparinvest USA Small
Performance |
| Timeline |
| Sparinvest Europa Growth |
| Sparinvest USA Small |
Sparinvest Europa and Sparinvest USA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sparinvest Europa and Sparinvest USA
The main advantage of trading using opposite Sparinvest Europa and Sparinvest USA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sparinvest Europa position performs unexpectedly, Sparinvest USA 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 USA will offset losses from the drop in Sparinvest USA's long position.| Sparinvest Europa vs. Jyske Invest Nye | Sparinvest Europa vs. Jyske Invest Korte | Sparinvest Europa vs. Jyske Invest Nye | Sparinvest Europa vs. Jyske Invest Virksomhedsobligationer |
| Sparinvest USA vs. Sparinvest Europa Growth | Sparinvest USA vs. Sparinvest INDEX Europa | Sparinvest USA vs. Sparinvest INDEX Hj | Sparinvest USA vs. Sparinvest SICAV Procedo |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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