Correlation Between FRASERS PROPERTY and Diös Fastigheter
Can any of the company-specific risk be diversified away by investing in both FRASERS PROPERTY and Diös Fastigheter at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining FRASERS PROPERTY and Diös Fastigheter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FRASERS PROPERTY and Dis Fastigheter AB, you can compare the effects of market volatilities on FRASERS PROPERTY and Diös Fastigheter 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 FRASERS PROPERTY with a short position of Diös Fastigheter. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRASERS PROPERTY and Diös Fastigheter.
Diversification Opportunities for FRASERS PROPERTY and Diös Fastigheter
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FRASERS and Diös is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding FRASERS PROPERTY and Dis Fastigheter AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dis Fastigheter AB and FRASERS PROPERTY 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 FRASERS PROPERTY are associated (or correlated) with Diös Fastigheter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dis Fastigheter AB has no effect on the direction of FRASERS PROPERTY i.e., FRASERS PROPERTY and Diös Fastigheter go up and down completely randomly.
Pair Corralation between FRASERS PROPERTY and Diös Fastigheter
Assuming the 90 days horizon FRASERS PROPERTY is expected to generate 3.39 times less return on investment than Diös Fastigheter. But when comparing it to its historical volatility, FRASERS PROPERTY is 1.34 times less risky than Diös Fastigheter. It trades about 0.02 of its potential returns per unit of risk. Dis Fastigheter AB is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 428.00 in Dis Fastigheter AB on September 4, 2024 and sell it today you would earn a total of 256.00 from holding Dis Fastigheter AB or generate 59.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
FRASERS PROPERTY vs. Dis Fastigheter AB
Performance |
| Timeline |
| FRASERS PROPERTY |
| Dis Fastigheter AB |
FRASERS PROPERTY and Diös Fastigheter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRASERS PROPERTY and Diös Fastigheter
The main advantage of trading using opposite FRASERS PROPERTY and Diös Fastigheter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRASERS PROPERTY position performs unexpectedly, Diös Fastigheter 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 Diös Fastigheter will offset losses from the drop in Diös Fastigheter's long position.| FRASERS PROPERTY vs. Live Nation Entertainment | FRASERS PROPERTY vs. Clean Energy Fuels | FRASERS PROPERTY vs. Thai Beverage Public | FRASERS PROPERTY vs. REMEDY ENTERTAINMENT OYJ |
| Diös Fastigheter vs. ADRIATIC METALS LS 013355 | Diös Fastigheter vs. GRIFFIN MINING LTD | Diös Fastigheter vs. Western Copper and | Diös Fastigheter vs. Evolution Mining Limited |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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