Correlation Between State Street and Sparinvest Danske
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By analyzing existing cross correlation between State Street Aggregate and Sparinvest Danske Aktier, you can compare the effects of market volatilities on State Street and Sparinvest Danske 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 State Street with a short position of Sparinvest Danske. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Street and Sparinvest Danske.
Diversification Opportunities for State Street and Sparinvest Danske
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between State and Sparinvest is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding State Street Aggregate and Sparinvest Danske Aktier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparinvest Danske Aktier and State Street 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 State Street Aggregate are associated (or correlated) with Sparinvest Danske. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparinvest Danske Aktier has no effect on the direction of State Street i.e., State Street and Sparinvest Danske go up and down completely randomly.
Pair Corralation between State Street and Sparinvest Danske
Assuming the 90 days horizon State Street Aggregate is expected to generate 0.69 times more return on investment than Sparinvest Danske. However, State Street Aggregate is 1.45 times less risky than Sparinvest Danske. It trades about -0.22 of its potential returns per unit of risk. Sparinvest Danske Aktier is currently generating about -0.17 per unit of risk. If you would invest 8,486 in State Street Aggregate on January 20, 2024 and sell it today you would lose (160.00) from holding State Street Aggregate or give up 1.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
State Street Aggregate vs. Sparinvest Danske Aktier
Performance |
| Timeline |
| State Street Aggregate |
| Sparinvest Danske Aktier |
State Street and Sparinvest Danske Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Street and Sparinvest Danske
The main advantage of trading using opposite State Street and Sparinvest Danske positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Street position performs unexpectedly, Sparinvest Danske 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 Danske will offset losses from the drop in Sparinvest Danske's long position.| State Street vs. State Street Target | State Street vs. Ssga International Stock | State Street vs. State Street Core | State Street vs. State Street Target |
| Sparinvest Danske vs. Jyske Invest Nye | Sparinvest Danske vs. Jyske Invest Nye | Sparinvest Danske vs. Jyske Invest Hjt | Sparinvest Danske 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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