Correlation Between Sparinvest Lange and Sparindex INDEX
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By analyzing existing cross correlation between Sparinvest Lange and Sparindex INDEX OMX, you can compare the effects of market volatilities on Sparinvest Lange and Sparindex 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 Lange with a short position of Sparindex INDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sparinvest Lange and Sparindex INDEX.
Diversification Opportunities for Sparinvest Lange and Sparindex INDEX
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sparinvest and Sparindex is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Sparinvest Lange and Sparindex INDEX OMX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparindex INDEX OMX 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 Sparindex INDEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparindex INDEX OMX has no effect on the direction of Sparinvest Lange i.e., Sparinvest Lange and Sparindex INDEX go up and down completely randomly.
Pair Corralation between Sparinvest Lange and Sparindex INDEX
Assuming the 90 days trading horizon Sparinvest Lange is expected to generate 0.29 times more return on investment than Sparindex INDEX. However, Sparinvest Lange is 3.42 times less risky than Sparindex INDEX. It trades about 0.1 of its potential returns per unit of risk. Sparindex INDEX OMX is currently generating about 0.0 per unit of risk. If you would invest 8,942 in Sparinvest Lange on September 3, 2024 and sell it today you would earn a total of 632.00 from holding Sparinvest Lange or generate 7.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sparinvest Lange vs. Sparindex INDEX OMX
Performance |
| Timeline |
| Sparinvest Lange |
| Sparindex INDEX OMX |
Sparinvest Lange and Sparindex INDEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sparinvest Lange and Sparindex INDEX
The main advantage of trading using opposite Sparinvest Lange and Sparindex INDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sparinvest Lange position performs unexpectedly, Sparindex 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 Sparindex INDEX will offset losses from the drop in Sparindex INDEX's long position.| Sparinvest Lange vs. Jyske Invest Nye | Sparinvest Lange vs. Jyske Invest Korte | Sparinvest Lange vs. Jyske Invest Nye | Sparinvest Lange vs. Jyske Invest Virksomhedsobligationer |
| Sparindex INDEX vs. Jyske Invest Nye | Sparindex INDEX vs. Jyske Invest Korte | Sparindex INDEX vs. Jyske Invest Nye | Sparindex INDEX vs. Jyske Invest Virksomhedsobligationer |
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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