Correlation Between Agat Ejendomme and Fast Ejendom
Can any of the company-specific risk be diversified away by investing in both Agat Ejendomme and Fast Ejendom 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 Agat Ejendomme and Fast Ejendom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agat Ejendomme AS and Fast Ejendom, you can compare the effects of market volatilities on Agat Ejendomme and Fast Ejendom 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 Agat Ejendomme with a short position of Fast Ejendom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agat Ejendomme and Fast Ejendom.
Diversification Opportunities for Agat Ejendomme and Fast Ejendom
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Agat and Fast is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Agat Ejendomme AS and Fast Ejendom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fast Ejendom and Agat Ejendomme 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 Agat Ejendomme AS are associated (or correlated) with Fast Ejendom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fast Ejendom has no effect on the direction of Agat Ejendomme i.e., Agat Ejendomme and Fast Ejendom go up and down completely randomly.
Pair Corralation between Agat Ejendomme and Fast Ejendom
Assuming the 90 days trading horizon Agat Ejendomme AS is expected to under-perform the Fast Ejendom. In addition to that, Agat Ejendomme is 1.41 times more volatile than Fast Ejendom. It trades about -0.09 of its total potential returns per unit of risk. Fast Ejendom is currently generating about -0.02 per unit of volatility. If you would invest 12,000 in Fast Ejendom on October 26, 2024 and sell it today you would lose (300.00) from holding Fast Ejendom or give up 2.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agat Ejendomme AS vs. Fast Ejendom
Performance |
| Timeline |
| Agat Ejendomme AS |
| Fast Ejendom |
Agat Ejendomme and Fast Ejendom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agat Ejendomme and Fast Ejendom
The main advantage of trading using opposite Agat Ejendomme and Fast Ejendom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agat Ejendomme position performs unexpectedly, Fast Ejendom 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 Fast Ejendom will offset losses from the drop in Fast Ejendom's long position.| Agat Ejendomme vs. Cemat AS | Agat Ejendomme vs. Columbus AS | Agat Ejendomme vs. Harboes Bryggeri AS | Agat Ejendomme vs. Copenhagen Capital AS |
| Fast Ejendom vs. Prime Office AS | Fast Ejendom vs. First Farms AS | Fast Ejendom vs. Jeudan | Fast Ejendom vs. Gabriel Holding |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |