Correlation Between Sparinvest INDEX and BankInvest Optima
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By analyzing existing cross correlation between Sparinvest INDEX Globale and BankInvest Optima 30, you can compare the effects of market volatilities on Sparinvest INDEX and BankInvest Optima 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 INDEX with a short position of BankInvest Optima. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sparinvest INDEX and BankInvest Optima.
Diversification Opportunities for Sparinvest INDEX and BankInvest Optima
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sparinvest and BankInvest is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Sparinvest INDEX Globale and BankInvest Optima 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInvest Optima and Sparinvest 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 Sparinvest INDEX Globale are associated (or correlated) with BankInvest Optima. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInvest Optima has no effect on the direction of Sparinvest INDEX i.e., Sparinvest INDEX and BankInvest Optima go up and down completely randomly.
Pair Corralation between Sparinvest INDEX and BankInvest Optima
Assuming the 90 days trading horizon Sparinvest INDEX Globale is expected to generate 1.4 times more return on investment than BankInvest Optima. However, Sparinvest INDEX is 1.4 times more volatile than BankInvest Optima 30. It trades about 0.21 of its potential returns per unit of risk. BankInvest Optima 30 is currently generating about 0.17 per unit of risk. If you would invest 14,715 in Sparinvest INDEX Globale on August 29, 2024 and sell it today you would earn a total of 540.00 from holding Sparinvest INDEX Globale or generate 3.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sparinvest INDEX Globale vs. BankInvest Optima 30
Performance |
| Timeline |
| Sparinvest INDEX Globale |
| BankInvest Optima |
Sparinvest INDEX and BankInvest Optima Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sparinvest INDEX and BankInvest Optima
The main advantage of trading using opposite Sparinvest INDEX and BankInvest Optima positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sparinvest INDEX position performs unexpectedly, BankInvest Optima 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 BankInvest Optima will offset losses from the drop in BankInvest Optima's long position.| Sparinvest INDEX vs. Sparinvest Europa Growth | Sparinvest INDEX vs. Sparinvest INDEX Europa | Sparinvest INDEX vs. Sparinvest INDEX Hj | Sparinvest INDEX vs. Sparinvest SICAV Procedo |
| BankInvest Optima vs. Ringkjoebing Landbobank AS | BankInvest Optima vs. Vestjysk Bank AS | BankInvest Optima vs. Sydbank AS | BankInvest Optima vs. Carnegie Wealth Management |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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