Correlation Between Sparinvest SICAV and Sparinvest USA
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By analyzing existing cross correlation between Sparinvest SICAV Procedo and Sparinvest USA Small, you can compare the effects of market volatilities on Sparinvest SICAV and Sparinvest USA 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 SICAV with a short position of Sparinvest USA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sparinvest SICAV and Sparinvest USA.
Diversification Opportunities for Sparinvest SICAV and Sparinvest USA
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sparinvest and Sparinvest is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Sparinvest SICAV Procedo and Sparinvest USA Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparinvest USA Small and Sparinvest 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 Sparinvest SICAV Procedo are associated (or correlated) with Sparinvest USA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparinvest USA Small has no effect on the direction of Sparinvest SICAV i.e., Sparinvest SICAV and Sparinvest USA go up and down completely randomly.
Pair Corralation between Sparinvest SICAV and Sparinvest USA
Assuming the 90 days trading horizon Sparinvest SICAV Procedo is expected to generate 0.44 times more return on investment than Sparinvest USA. However, Sparinvest SICAV Procedo is 2.28 times less risky than Sparinvest USA. It trades about 0.09 of its potential returns per unit of risk. Sparinvest USA Small is currently generating about 0.04 per unit of risk. If you would invest 22,230 in Sparinvest SICAV Procedo on November 27, 2024 and sell it today you would earn a total of 5,000 from holding Sparinvest SICAV Procedo or generate 22.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sparinvest SICAV Procedo vs. Sparinvest USA Small
Performance |
| Timeline |
| Sparinvest SICAV Procedo |
| Sparinvest USA Small |
Sparinvest SICAV and Sparinvest USA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sparinvest SICAV and Sparinvest USA
The main advantage of trading using opposite Sparinvest SICAV and Sparinvest USA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sparinvest SICAV position performs unexpectedly, Sparinvest USA 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 USA will offset losses from the drop in Sparinvest USA's long position.| Sparinvest SICAV vs. Sparinvest Lange | Sparinvest SICAV vs. Sparinvest Europa Growth | Sparinvest SICAV vs. Sparinvest INDEX Europa | Sparinvest SICAV vs. Sparinvest INDEX Hj |
| Sparinvest USA vs. Sparinvest Lange | Sparinvest USA vs. Sparinvest Europa Growth | Sparinvest USA vs. Sparinvest INDEX Europa | Sparinvest USA vs. Sparinvest INDEX Hj |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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