Correlation Between Sparinvest Europa and Sparinvest INDEX
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By analyzing existing cross correlation between Sparinvest Europa Growth and Sparinvest INDEX Mellem, you can compare the effects of market volatilities on Sparinvest Europa 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 Sparinvest Europa with a short position of Sparinvest INDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sparinvest Europa and Sparinvest INDEX.
Diversification Opportunities for Sparinvest Europa and Sparinvest INDEX
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sparinvest and Sparinvest is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Sparinvest Europa Growth 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 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 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 Sparinvest Europa i.e., Sparinvest Europa and Sparinvest INDEX go up and down completely randomly.
Pair Corralation between Sparinvest Europa and Sparinvest INDEX
Assuming the 90 days trading horizon Sparinvest Europa is expected to generate 2.97 times less return on investment than Sparinvest INDEX. In addition to that, Sparinvest Europa is 1.93 times more volatile than Sparinvest INDEX Mellem. It trades about 0.02 of its total potential returns per unit of risk. Sparinvest INDEX Mellem is currently generating about 0.11 per unit of volatility. If you would invest 10,196 in Sparinvest INDEX Mellem on August 26, 2024 and sell it today you would earn a total of 1,954 from holding Sparinvest INDEX Mellem or generate 19.16% 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 INDEX Mellem
Performance |
| Timeline |
| Sparinvest Europa Growth |
| Sparinvest INDEX Mellem |
Sparinvest Europa and Sparinvest INDEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sparinvest Europa and Sparinvest INDEX
The main advantage of trading using opposite Sparinvest Europa and Sparinvest INDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sparinvest Europa 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.| 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 INDEX vs. Sparinvest Europa Growth | Sparinvest INDEX vs. Sparinvest INDEX Europa | Sparinvest INDEX vs. Sparinvest INDEX Hj | Sparinvest INDEX 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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