Correlation Between Sparinvest Lange and Maj Invest
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By analyzing existing cross correlation between Sparinvest Lange and Maj Invest , you can compare the effects of market volatilities on Sparinvest Lange and Maj Invest 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 Lange with a short position of Maj Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sparinvest Lange and Maj Invest.
Diversification Opportunities for Sparinvest Lange and Maj Invest
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sparinvest and Maj is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Sparinvest Lange and Maj Invest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maj Invest and Sparinvest Lange 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 Lange are associated (or correlated) with Maj Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maj Invest has no effect on the direction of Sparinvest Lange i.e., Sparinvest Lange and Maj Invest go up and down completely randomly.
Pair Corralation between Sparinvest Lange and Maj Invest
Assuming the 90 days trading horizon Sparinvest Lange is expected to generate 0.48 times more return on investment than Maj Invest. However, Sparinvest Lange is 2.1 times less risky than Maj Invest. It trades about -0.23 of its potential returns per unit of risk. Maj Invest is currently generating about -0.19 per unit of risk. If you would invest 9,582 in Sparinvest Lange on November 4, 2024 and sell it today you would lose (104.00) from holding Sparinvest Lange or give up 1.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sparinvest Lange vs. Maj Invest
Performance |
| Timeline |
| Sparinvest Lange |
| Maj Invest |
Sparinvest Lange and Maj Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sparinvest Lange and Maj Invest
The main advantage of trading using opposite Sparinvest Lange and Maj Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sparinvest Lange position performs unexpectedly, Maj Invest 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 Maj Invest will offset losses from the drop in Maj Invest's long position.| Sparinvest Lange vs. Sparinvest INDEX Europa | Sparinvest Lange vs. Sparinvest INDEX Hj | Sparinvest Lange vs. Sparinvest SICAV Procedo | Sparinvest Lange vs. Sparinvest Mellemlange |
| Maj Invest vs. Maj Invest | Maj Invest vs. Maj Invest Value | Maj Invest vs. Sparinvest Lange | Maj Invest 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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