Correlation Between Sparinvest INDEX and Sparinvest Europa
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By analyzing existing cross correlation between Sparinvest INDEX Hj and Sparinvest Europa Growth, you can compare the effects of market volatilities on Sparinvest INDEX and Sparinvest Europa 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 INDEX with a short position of Sparinvest Europa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sparinvest INDEX and Sparinvest Europa.
Diversification Opportunities for Sparinvest INDEX and Sparinvest Europa
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sparinvest and Sparinvest is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Sparinvest INDEX Hj and Sparinvest Europa Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparinvest Europa Growth and Sparinvest 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 Sparinvest INDEX Hj are associated (or correlated) with Sparinvest Europa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparinvest Europa Growth has no effect on the direction of Sparinvest INDEX i.e., Sparinvest INDEX and Sparinvest Europa go up and down completely randomly.
Pair Corralation between Sparinvest INDEX and Sparinvest Europa
Assuming the 90 days trading horizon Sparinvest INDEX Hj is expected to generate 0.34 times more return on investment than Sparinvest Europa. However, Sparinvest INDEX Hj is 2.97 times less risky than Sparinvest Europa. It trades about 0.04 of its potential returns per unit of risk. Sparinvest Europa Growth is currently generating about 0.01 per unit of risk. If you would invest 12,895 in Sparinvest INDEX Hj on November 18, 2024 and sell it today you would earn a total of 165.00 from holding Sparinvest INDEX Hj or generate 1.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sparinvest INDEX Hj vs. Sparinvest Europa Growth
Performance |
| Timeline |
| Sparinvest INDEX |
| Sparinvest Europa Growth |
Sparinvest INDEX and Sparinvest Europa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sparinvest INDEX and Sparinvest Europa
The main advantage of trading using opposite Sparinvest INDEX and Sparinvest Europa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sparinvest INDEX position performs unexpectedly, Sparinvest Europa 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 Sparinvest Europa will offset losses from the drop in Sparinvest Europa's long position.| Sparinvest INDEX vs. Sparinvest INDEX Europa | Sparinvest INDEX vs. Sparinvest SICAV Procedo | Sparinvest INDEX vs. Sparinvest Mellemlange | Sparinvest INDEX vs. Sparinvest INDEX Mellem |
| Sparinvest Europa vs. Sparinvest Lange | Sparinvest Europa vs. Investeringsforeningen Danske Invest | Sparinvest Europa vs. Sparinv SICAV | Sparinvest Europa vs. Sparinvest Value Emerging |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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