Correlation Between Alibaba Group and Sparinvest INDEX
Specify exactly 2 symbols:
By analyzing existing cross correlation between Alibaba Group Holding and Sparinvest INDEX Globale, you can compare the effects of market volatilities on Alibaba Group and Sparinvest 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 Alibaba Group with a short position of Sparinvest INDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alibaba Group and Sparinvest INDEX.
Diversification Opportunities for Alibaba Group and Sparinvest INDEX
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Alibaba and Sparinvest is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Alibaba Group Holding and Sparinvest INDEX Globale in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparinvest INDEX Globale and Alibaba Group 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 Alibaba Group Holding are associated (or correlated) with Sparinvest INDEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparinvest INDEX Globale has no effect on the direction of Alibaba Group i.e., Alibaba Group and Sparinvest INDEX go up and down completely randomly.
Pair Corralation between Alibaba Group and Sparinvest INDEX
Given the investment horizon of 90 days Alibaba Group Holding is expected to under-perform the Sparinvest INDEX. In addition to that, Alibaba Group is 2.81 times more volatile than Sparinvest INDEX Globale. It trades about -0.03 of its total potential returns per unit of risk. Sparinvest INDEX Globale is currently generating about 0.06 per unit of volatility. If you would invest 15,680 in Sparinvest INDEX Globale on January 25, 2024 and sell it today you would earn a total of 215.00 from holding Sparinvest INDEX Globale or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Alibaba Group Holding vs. Sparinvest INDEX Globale
Performance |
| Timeline |
| Alibaba Group Holding |
| Sparinvest INDEX Globale |
Alibaba Group and Sparinvest INDEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alibaba Group and Sparinvest INDEX
The main advantage of trading using opposite Alibaba Group and Sparinvest INDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alibaba Group position performs unexpectedly, Sparinvest 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 Sparinvest INDEX will offset losses from the drop in Sparinvest INDEX's long position.| Alibaba Group vs. Sea | Alibaba Group vs. Vipshop Holdings Limited | Alibaba Group vs. Amazon Inc | Alibaba Group vs. JD Inc Adr |
| Sparinvest INDEX vs. Jyske Invest Nye | Sparinvest INDEX vs. Jyske Invest Nye | Sparinvest INDEX vs. Jyske Invest Hjt | Sparinvest INDEX vs. Jyske Invest Lange |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |