Correlation Between Sparinvest Lange and Maj Invest
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By analyzing existing cross correlation between Sparinvest Lange and Maj Invest Value, 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
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sparinvest and Maj is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Sparinvest Lange and Maj Invest Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maj Invest Value 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 Value 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 29.66 times less return on investment than Maj Invest. But when comparing it to its historical volatility, Sparinvest Lange is 3.06 times less risky than Maj Invest. It trades about 0.01 of its potential returns per unit of risk. Maj Invest Value is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 18,464 in Maj Invest Value on October 24, 2024 and sell it today you would earn a total of 1,426 from holding Maj Invest Value or generate 7.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sparinvest Lange vs. Maj Invest Value
Performance |
| Timeline |
| Sparinvest Lange |
| Maj Invest Value |
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. Investeringsforeningen Danske Invest | Sparinvest Lange vs. Sparinv SICAV | Sparinvest Lange vs. Investeringsforeningen Danske Invest |
| Maj Invest vs. Maj Invest | Maj Invest vs. Maj Invest | 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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