Correlation Between XACT Bull and XACT Sverige
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By analyzing existing cross correlation between XACT Bull and XACT Sverige, you can compare the effects of market volatilities on XACT Bull and XACT Sverige 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 XACT Bull with a short position of XACT Sverige. Check out your portfolio center. Please also check ongoing floating volatility patterns of XACT Bull and XACT Sverige.
Diversification Opportunities for XACT Bull and XACT Sverige
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between XACT and XACT is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding XACT Bull and XACT Sverige in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XACT Sverige and XACT Bull 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 XACT Bull are associated (or correlated) with XACT Sverige. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XACT Sverige has no effect on the direction of XACT Bull i.e., XACT Bull and XACT Sverige go up and down completely randomly.
Pair Corralation between XACT Bull and XACT Sverige
Assuming the 90 days trading horizon XACT Bull is expected to generate 1.71 times more return on investment than XACT Sverige. However, XACT Bull is 1.71 times more volatile than XACT Sverige. It trades about 0.05 of its potential returns per unit of risk. XACT Sverige is currently generating about 0.04 per unit of risk. If you would invest 79,400 in XACT Bull on February 4, 2024 and sell it today you would earn a total of 990.00 from holding XACT Bull or generate 1.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
XACT Bull vs. XACT Sverige
Performance |
Timeline |
XACT Bull |
XACT Sverige |
XACT Bull and XACT Sverige Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with XACT Bull and XACT Sverige
The main advantage of trading using opposite XACT Bull and XACT Sverige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XACT Bull position performs unexpectedly, XACT Sverige 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 XACT Sverige will offset losses from the drop in XACT Sverige's long position.XACT Bull vs. XACT NORDEN | XACT Bull vs. XACT OMXS30 ESG | XACT Bull vs. XACT Nordic High | XACT Bull vs. XACT Sverige |
XACT Sverige vs. XACT NORDEN | XACT Sverige vs. XACT OMXS30 ESG | XACT Sverige vs. XACT Nordic High | XACT Sverige vs. XACT Bull |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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