Correlation Between Sparinv SICAV and Sparinvest Europa
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By analyzing existing cross correlation between Sparinv SICAV and Sparinvest Europa Growth, you can compare the effects of market volatilities on Sparinv SICAV 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 Sparinv SICAV with a short position of Sparinvest Europa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sparinv SICAV and Sparinvest Europa.
Diversification Opportunities for Sparinv SICAV and Sparinvest Europa
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sparinv and Sparinvest is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Sparinv SICAV 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 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 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 Sparinv SICAV i.e., Sparinv SICAV and Sparinvest Europa go up and down completely randomly.
Pair Corralation between Sparinv SICAV and Sparinvest Europa
Assuming the 90 days trading horizon Sparinv SICAV is expected to generate 1.08 times less return on investment than Sparinvest Europa. But when comparing it to its historical volatility, Sparinv SICAV is 1.15 times less risky than Sparinvest Europa. It trades about 0.39 of its potential returns per unit of risk. Sparinvest Europa Growth is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 15,946 in Sparinvest Europa Growth on October 26, 2024 and sell it today you would earn a total of 757.00 from holding Sparinvest Europa Growth or generate 4.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sparinv SICAV vs. Sparinvest Europa Growth
Performance |
| Timeline |
| Sparinv SICAV |
| Sparinvest Europa Growth |
Sparinv SICAV and Sparinvest Europa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sparinv SICAV and Sparinvest Europa
The main advantage of trading using opposite Sparinv SICAV and Sparinvest Europa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sparinv SICAV 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.The idea behind Sparinv SICAV and Sparinvest Europa Growth 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.| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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