Correlation Between Sparinvest Value and Maj Invest
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By analyzing existing cross correlation between Sparinvest Value Emerging and Maj Invest Emerging, you can compare the effects of market volatilities on Sparinvest Value 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 Value with a short position of Maj Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sparinvest Value and Maj Invest.
Diversification Opportunities for Sparinvest Value and Maj Invest
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sparinvest and Maj is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Sparinvest Value Emerging and Maj Invest Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maj Invest Emerging and Sparinvest Value 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 Value Emerging 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 Emerging has no effect on the direction of Sparinvest Value i.e., Sparinvest Value and Maj Invest go up and down completely randomly.
Pair Corralation between Sparinvest Value and Maj Invest
Assuming the 90 days trading horizon Sparinvest Value Emerging is expected to generate 0.78 times more return on investment than Maj Invest. However, Sparinvest Value Emerging is 1.28 times less risky than Maj Invest. It trades about 0.08 of its potential returns per unit of risk. Maj Invest Emerging is currently generating about -0.02 per unit of risk. If you would invest 14,135 in Sparinvest Value Emerging on October 21, 2024 and sell it today you would earn a total of 145.00 from holding Sparinvest Value Emerging or generate 1.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Sparinvest Value Emerging vs. Maj Invest Emerging
Performance |
Timeline |
Sparinvest Value Emerging |
Maj Invest Emerging |
Sparinvest Value and Maj Invest Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sparinvest Value and Maj Invest
The main advantage of trading using opposite Sparinvest Value and Maj Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sparinvest Value 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 Value vs. BankInvest Emerging | Sparinvest Value vs. Maj Invest Emerging | Sparinvest Value vs. Sparinvest Lange | Sparinvest Value vs. Investeringsforeningen Danske Invest |
Maj Invest vs. BankInvest Korte Danske | Maj Invest vs. Sparinvest USA Small | Maj Invest vs. Danske Invest | Maj Invest vs. BankInvest Optima 30 |
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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