Correlation Between PKSHA TECHNOLOGY and Dis Fastigheter
Can any of the company-specific risk be diversified away by investing in both PKSHA TECHNOLOGY and Dis 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 PKSHA TECHNOLOGY and Dis Fastigheter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PKSHA TECHNOLOGY INC and Dis Fastigheter AB, you can compare the effects of market volatilities on PKSHA TECHNOLOGY and Dis 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 PKSHA TECHNOLOGY with a short position of Dis Fastigheter. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKSHA TECHNOLOGY and Dis Fastigheter.
Diversification Opportunities for PKSHA TECHNOLOGY and Dis Fastigheter
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PKSHA and Dis is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding PKSHA TECHNOLOGY INC 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 PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY INC are associated (or correlated) with Dis 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 PKSHA TECHNOLOGY i.e., PKSHA TECHNOLOGY and Dis Fastigheter go up and down completely randomly.
Pair Corralation between PKSHA TECHNOLOGY and Dis Fastigheter
Assuming the 90 days horizon PKSHA TECHNOLOGY INC is expected to generate 2.14 times more return on investment than Dis Fastigheter. However, PKSHA TECHNOLOGY is 2.14 times more volatile than Dis Fastigheter AB. It trades about 0.13 of its potential returns per unit of risk. Dis Fastigheter AB is currently generating about -0.05 per unit of risk. If you would invest 2,240 in PKSHA TECHNOLOGY INC on September 13, 2024 and sell it today you would earn a total of 220.00 from holding PKSHA TECHNOLOGY INC or generate 9.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PKSHA TECHNOLOGY INC vs. Dis Fastigheter AB
Performance |
| Timeline |
| PKSHA TECHNOLOGY INC |
| Dis Fastigheter AB |
PKSHA TECHNOLOGY and Dis Fastigheter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKSHA TECHNOLOGY and Dis Fastigheter
The main advantage of trading using opposite PKSHA TECHNOLOGY and Dis Fastigheter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKSHA TECHNOLOGY position performs unexpectedly, Dis 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 Dis Fastigheter will offset losses from the drop in Dis Fastigheter's long position.| PKSHA TECHNOLOGY vs. Adyen NV | PKSHA TECHNOLOGY vs. Superior Plus Corp | PKSHA TECHNOLOGY vs. SIVERS SEMICONDUCTORS AB | PKSHA TECHNOLOGY vs. Norsk Hydro ASA |
| Dis Fastigheter vs. OPEN HOUSE GROUP | Dis Fastigheter vs. Superior Plus Corp | Dis Fastigheter vs. SIVERS SEMICONDUCTORS AB | Dis Fastigheter vs. CHINA HUARONG ENERHD 50 |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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