Correlation Between Sparindex INDEX and DKINYM
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By analyzing existing cross correlation between Sparindex INDEX Stabile and Investeringsforeningen Danske Invest, you can compare the effects of market volatilities on Sparindex INDEX and DKINYM 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 Sparindex INDEX with a short position of DKINYM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sparindex INDEX and DKINYM.
Diversification Opportunities for Sparindex INDEX and DKINYM
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sparindex and DKINYM is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Sparindex INDEX Stabile and Investeringsforeningen Danske in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investeringsforeningen and Sparindex 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 Sparindex INDEX Stabile are associated (or correlated) with DKINYM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investeringsforeningen has no effect on the direction of Sparindex INDEX i.e., Sparindex INDEX and DKINYM go up and down completely randomly.
Pair Corralation between Sparindex INDEX and DKINYM
Assuming the 90 days trading horizon Sparindex INDEX is expected to generate 2.59 times less return on investment than DKINYM. But when comparing it to its historical volatility, Sparindex INDEX Stabile is 5.02 times less risky than DKINYM. It trades about 0.11 of its potential returns per unit of risk. Investeringsforeningen Danske Invest is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 16,496 in Investeringsforeningen Danske Invest on September 13, 2024 and sell it today you would earn a total of 4,104 from holding Investeringsforeningen Danske Invest or generate 24.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sparindex INDEX Stabile vs. Investeringsforeningen Danske
Performance |
| Timeline |
| Sparindex INDEX Stabile |
| Investeringsforeningen |
Sparindex INDEX and DKINYM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sparindex INDEX and DKINYM
The main advantage of trading using opposite Sparindex INDEX and DKINYM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sparindex INDEX position performs unexpectedly, DKINYM 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 DKINYM will offset losses from the drop in DKINYM's long position.| Sparindex INDEX vs. Investeringsforeningen Danske Invest | Sparindex INDEX vs. Investeringsforeningen Danske Invest | Sparindex INDEX vs. Sparinv SICAV |
| DKINYM vs. Jyske Invest Nye | DKINYM vs. Jyske Invest Korte | DKINYM vs. Jyske Invest Nye | DKINYM 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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