Correlation Between IE00B0H4TS55 and BEKA LUX
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By analyzing existing cross correlation between IE00B0H4TS55 and BEKA LUX SICAV, you can compare the effects of market volatilities on IE00B0H4TS55 and BEKA LUX 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 IE00B0H4TS55 with a short position of BEKA LUX. Check out your portfolio center. Please also check ongoing floating volatility patterns of IE00B0H4TS55 and BEKA LUX.
Diversification Opportunities for IE00B0H4TS55 and BEKA LUX
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IE00B0H4TS55 and BEKA is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding IE00B0H4TS55 and BEKA LUX SICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BEKA LUX SICAV and IE00B0H4TS55 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 IE00B0H4TS55 are associated (or correlated) with BEKA LUX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BEKA LUX SICAV has no effect on the direction of IE00B0H4TS55 i.e., IE00B0H4TS55 and BEKA LUX go up and down completely randomly.
Pair Corralation between IE00B0H4TS55 and BEKA LUX
Assuming the 90 days trading horizon IE00B0H4TS55 is expected to under-perform the BEKA LUX. But the fund apears to be less risky and, when comparing its historical volatility, IE00B0H4TS55 is 1.18 times less risky than BEKA LUX. The fund trades about -0.03 of its potential returns per unit of risk. The BEKA LUX SICAV is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 8,585 in BEKA LUX SICAV on September 5, 2024 and sell it today you would earn a total of 218.00 from holding BEKA LUX SICAV or generate 2.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
IE00B0H4TS55 vs. BEKA LUX SICAV
Performance |
Timeline |
IE00B0H4TS55 |
BEKA LUX SICAV |
IE00B0H4TS55 and BEKA LUX Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IE00B0H4TS55 and BEKA LUX
The main advantage of trading using opposite IE00B0H4TS55 and BEKA LUX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IE00B0H4TS55 position performs unexpectedly, BEKA LUX 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 BEKA LUX will offset losses from the drop in BEKA LUX's long position.IE00B0H4TS55 vs. BBVA Telecomunicaciones PP | IE00B0H4TS55 vs. Nova Europe ISR | IE00B0H4TS55 vs. R co Thematic Silver | IE00B0H4TS55 vs. Renaissance Europe C |
BEKA LUX vs. Groupama Entreprises N | BEKA LUX vs. Renaissance Europe C | BEKA LUX vs. Superior Plus Corp | BEKA LUX vs. Origin Agritech |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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