Correlation Between Sparinv SICAV and BAIGAI
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By analyzing existing cross correlation between Sparinv SICAV and Investeringsforeningen Bankinvest , you can compare the effects of market volatilities on Sparinv SICAV and BAIGAI 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 Sparinv SICAV with a short position of BAIGAI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sparinv SICAV and BAIGAI.
Diversification Opportunities for Sparinv SICAV and BAIGAI
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sparinv and BAIGAI is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Sparinv SICAV and Investeringsforeningen Bankinv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investeringsforeningen and Sparinv SICAV 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 Sparinv SICAV are associated (or correlated) with BAIGAI. 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 Sparinv SICAV i.e., Sparinv SICAV and BAIGAI go up and down completely randomly.
Pair Corralation between Sparinv SICAV and BAIGAI
Assuming the 90 days trading horizon Sparinv SICAV is expected to generate 0.82 times more return on investment than BAIGAI. However, Sparinv SICAV is 1.22 times less risky than BAIGAI. It trades about 0.2 of its potential returns per unit of risk. Investeringsforeningen Bankinvest is currently generating about 0.05 per unit of risk. If you would invest 29,880 in Sparinv SICAV on November 27, 2024 and sell it today you would earn a total of 700.00 from holding Sparinv SICAV or generate 2.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Sparinv SICAV vs. Investeringsforeningen Bankinv
Performance |
| Timeline |
| Sparinv SICAV |
| Investeringsforeningen |
Sparinv SICAV and BAIGAI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sparinv SICAV and BAIGAI
The main advantage of trading using opposite Sparinv SICAV and BAIGAI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sparinv SICAV position performs unexpectedly, BAIGAI 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 BAIGAI will offset losses from the drop in BAIGAI's long position.The idea behind Sparinv SICAV and Investeringsforeningen Bankinvest pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Global Correlations module to find global opportunities by holding instruments from different markets.
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