Correlation Between Bankinvest Europa and Target
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By analyzing existing cross correlation between Bankinvest Europa and Target, you can compare the effects of market volatilities on Bankinvest Europa and Target 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 Bankinvest Europa with a short position of Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bankinvest Europa and Target.
Diversification Opportunities for Bankinvest Europa and Target
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bankinvest and Target is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Bankinvest Europa and Target in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Target and Bankinvest Europa 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 Bankinvest Europa are associated (or correlated) with Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Target has no effect on the direction of Bankinvest Europa i.e., Bankinvest Europa and Target go up and down completely randomly.
Pair Corralation between Bankinvest Europa and Target
Assuming the 90 days trading horizon Bankinvest Europa is expected to generate 2.74 times less return on investment than Target. But when comparing it to its historical volatility, Bankinvest Europa is 2.95 times less risky than Target. It trades about 0.18 of its potential returns per unit of risk. Target is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 10,535 in Target on January 25, 2024 and sell it today you would earn a total of 5,999 from holding Target or generate 56.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bankinvest Europa vs. Target
Performance |
| Timeline |
| Bankinvest Europa |
| Target |
Bankinvest Europa and Target Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bankinvest Europa and Target
The main advantage of trading using opposite Bankinvest Europa and Target positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bankinvest Europa position performs unexpectedly, Target 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 Target will offset losses from the drop in Target's long position.| Bankinvest Europa vs. Jyske Invest Nye | Bankinvest Europa vs. Jyske Invest Nye | Bankinvest Europa vs. Jyske Invest Hjt | Bankinvest Europa vs. Jyske Invest Lange |
| Target vs. Costco Wholesale Corp | Target vs. BJs Wholesale Club | Target vs. Dollar Tree | Target vs. Dollar General |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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