Correlation Between Atrium Ljungberg and Fastighets
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By analyzing existing cross correlation between Atrium Ljungberg AB and Fastighets AB Balder, you can compare the effects of market volatilities on Atrium Ljungberg and Fastighets 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 Atrium Ljungberg with a short position of Fastighets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atrium Ljungberg and Fastighets.
Diversification Opportunities for Atrium Ljungberg and Fastighets
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atrium and Fastighets is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Atrium Ljungberg AB and Fastighets AB Balder in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fastighets AB Balder and Atrium Ljungberg 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 Atrium Ljungberg AB are associated (or correlated) with Fastighets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fastighets AB Balder has no effect on the direction of Atrium Ljungberg i.e., Atrium Ljungberg and Fastighets go up and down completely randomly.
Pair Corralation between Atrium Ljungberg and Fastighets
Assuming the 90 days trading horizon Atrium Ljungberg AB is expected to under-perform the Fastighets. But the stock apears to be less risky and, when comparing its historical volatility, Atrium Ljungberg AB is 1.4 times less risky than Fastighets. The stock trades about -0.17 of its potential returns per unit of risk. The Fastighets AB Balder is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 8,448 in Fastighets AB Balder on August 27, 2024 and sell it today you would lose (182.00) from holding Fastighets AB Balder or give up 2.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atrium Ljungberg AB vs. Fastighets AB Balder
Performance |
| Timeline |
| Atrium Ljungberg |
| Fastighets AB Balder |
Atrium Ljungberg and Fastighets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atrium Ljungberg and Fastighets
The main advantage of trading using opposite Atrium Ljungberg and Fastighets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atrium Ljungberg position performs unexpectedly, Fastighets 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 Fastighets will offset losses from the drop in Fastighets' long position.| Atrium Ljungberg vs. Hufvudstaden AB | Atrium Ljungberg vs. Fabege AB | Atrium Ljungberg vs. Wihlborgs Fastigheter AB | Atrium Ljungberg vs. Fastighets AB Balder |
| Fastighets vs. Castellum AB | Fastighets vs. Fabege AB | Fastighets vs. AB Sagax | Fastighets vs. Wallenstam 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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