Correlation Between Sparinv SICAV and Sparindex INDEX
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By analyzing existing cross correlation between Sparinv SICAV and Sparindex INDEX Stabile, you can compare the effects of market volatilities on Sparinv SICAV and Sparindex INDEX 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 Sparindex INDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sparinv SICAV and Sparindex INDEX.
Diversification Opportunities for Sparinv SICAV and Sparindex INDEX
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sparinv and Sparindex is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Sparinv SICAV and Sparindex INDEX Stabile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparindex INDEX Stabile 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 Sparindex INDEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparindex INDEX Stabile has no effect on the direction of Sparinv SICAV i.e., Sparinv SICAV and Sparindex INDEX go up and down completely randomly.
Pair Corralation between Sparinv SICAV and Sparindex INDEX
Assuming the 90 days trading horizon Sparinv SICAV is expected to generate 8.07 times more return on investment than Sparindex INDEX. However, Sparinv SICAV is 8.07 times more volatile than Sparindex INDEX Stabile. It trades about 0.1 of its potential returns per unit of risk. Sparindex INDEX Stabile is currently generating about 0.22 per unit of risk. If you would invest 26,420 in Sparinv SICAV on September 5, 2024 and sell it today you would earn a total of 3,530 from holding Sparinv SICAV or generate 13.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.22% |
| Values | Daily Returns |
Sparinv SICAV vs. Sparindex INDEX Stabile
Performance |
| Timeline |
| Sparinv SICAV |
| Sparindex INDEX Stabile |
Sparinv SICAV and Sparindex INDEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sparinv SICAV and Sparindex INDEX
The main advantage of trading using opposite Sparinv SICAV and Sparindex INDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sparinv SICAV position performs unexpectedly, Sparindex INDEX 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 Sparindex INDEX will offset losses from the drop in Sparindex INDEX's long position.| Sparinv SICAV vs. Sparinvest Lange | Sparinv SICAV vs. Investeringsforeningen Danske Invest | Sparinv SICAV vs. Investeringsforeningen Danske Invest |
| Sparindex INDEX vs. Sparinvest Lange | Sparindex INDEX vs. Investeringsforeningen Danske Invest | Sparindex INDEX vs. Sparinv SICAV | Sparindex INDEX 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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