Correlation Between Sparinvest Value and Maj Invest
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By analyzing existing cross correlation between Sparinvest Value Emerging and Maj Invest Value, 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
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sparinvest and Maj is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Sparinvest Value Emerging 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 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 Value 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 is expected to generate 2.52 times less return on investment than Maj Invest. In addition to that, Sparinvest Value is 1.27 times more volatile than Maj Invest Value. It trades about 0.03 of its total potential returns per unit of risk. Maj Invest Value is currently generating about 0.1 per unit of volatility. If you would invest 13,560 in Maj Invest Value on August 29, 2024 and sell it today you would earn a total of 6,196 from holding Maj Invest Value or generate 45.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 93.33% |
| Values | Daily Returns |
Sparinvest Value Emerging vs. Maj Invest Value
Performance |
| Timeline |
| Sparinvest Value Emerging |
| Maj Invest Value |
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. Jyske Invest Nye | Sparinvest Value vs. Jyske Invest Korte | Sparinvest Value vs. Jyske Invest Nye | Sparinvest Value vs. Jyske Invest Virksomhedsobligationer |
| 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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