Correlation Between AEON MALL and Dis Fastigheter
Can any of the company-specific risk be diversified away by investing in both AEON MALL 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 AEON MALL and Dis Fastigheter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEON MALL LTD and Dis Fastigheter AB, you can compare the effects of market volatilities on AEON MALL 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 AEON MALL with a short position of Dis Fastigheter. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEON MALL and Dis Fastigheter.
Diversification Opportunities for AEON MALL and Dis Fastigheter
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AEON and Dis is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding AEON MALL LTD 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 AEON MALL 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 AEON MALL LTD 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 AEON MALL i.e., AEON MALL and Dis Fastigheter go up and down completely randomly.
Pair Corralation between AEON MALL and Dis Fastigheter
Assuming the 90 days horizon AEON MALL LTD is expected to generate 0.5 times more return on investment than Dis Fastigheter. However, AEON MALL LTD is 2.02 times less risky than Dis Fastigheter. It trades about 0.04 of its potential returns per unit of risk. Dis Fastigheter AB is currently generating about -0.15 per unit of risk. If you would invest 1,210 in AEON MALL LTD on August 25, 2024 and sell it today you would earn a total of 10.00 from holding AEON MALL LTD or generate 0.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
AEON MALL LTD vs. Dis Fastigheter AB
Performance |
| Timeline |
| AEON MALL LTD |
| Dis Fastigheter AB |
AEON MALL and Dis Fastigheter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEON MALL and Dis Fastigheter
The main advantage of trading using opposite AEON MALL and Dis Fastigheter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEON MALL 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.| AEON MALL vs. Dis Fastigheter AB | AEON MALL vs. Superior Plus Corp | AEON MALL vs. NMI Holdings | AEON MALL vs. Origin Agritech |
| Dis Fastigheter vs. Superior Plus Corp | Dis Fastigheter vs. NMI Holdings | Dis Fastigheter vs. Origin Agritech | Dis Fastigheter vs. SIVERS SEMICONDUCTORS AB |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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