Correlation Between Sparinvest USA and BankInvest Optima
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By analyzing existing cross correlation between Sparinvest USA Small and BankInvest Optima 30, you can compare the effects of market volatilities on Sparinvest USA 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 USA with a short position of BankInvest Optima. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sparinvest USA and BankInvest Optima.
Diversification Opportunities for Sparinvest USA and BankInvest Optima
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sparinvest and BankInvest is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Sparinvest USA Small 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 USA 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 USA Small 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 USA i.e., Sparinvest USA and BankInvest Optima go up and down completely randomly.
Pair Corralation between Sparinvest USA and BankInvest Optima
Assuming the 90 days trading horizon Sparinvest USA Small is expected to generate 3.51 times more return on investment than BankInvest Optima. However, Sparinvest USA is 3.51 times more volatile than BankInvest Optima 30. It trades about 0.26 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 12,901 in Sparinvest USA Small on August 29, 2024 and sell it today you would earn a total of 1,439 from holding Sparinvest USA Small or generate 11.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sparinvest USA Small vs. BankInvest Optima 30
Performance |
| Timeline |
| Sparinvest USA Small |
| BankInvest Optima |
Sparinvest USA and BankInvest Optima Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sparinvest USA and BankInvest Optima
The main advantage of trading using opposite Sparinvest USA and BankInvest Optima positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sparinvest USA 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 USA vs. Jyske Invest Nye | Sparinvest USA vs. Jyske Invest Korte | Sparinvest USA vs. Jyske Invest Nye | Sparinvest USA vs. Jyske Invest Virksomhedsobligationer |
| BankInvest Optima vs. MapsPeople AS | BankInvest Optima vs. Penneo AS | BankInvest Optima vs. Dataproces Group AS | BankInvest Optima vs. Orderyoyo AS |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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