Correlation Between Axfood AB and Platzer Fastigheter
Can any of the company-specific risk be diversified away by investing in both Axfood AB and Platzer 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 Axfood AB and Platzer Fastigheter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axfood AB and Platzer Fastigheter Holding, you can compare the effects of market volatilities on Axfood AB and Platzer 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 Axfood AB with a short position of Platzer Fastigheter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axfood AB and Platzer Fastigheter.
Diversification Opportunities for Axfood AB and Platzer Fastigheter
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Axfood and Platzer is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Axfood AB and Platzer Fastigheter Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platzer Fastigheter and Axfood AB 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 Axfood AB are associated (or correlated) with Platzer Fastigheter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platzer Fastigheter has no effect on the direction of Axfood AB i.e., Axfood AB and Platzer Fastigheter go up and down completely randomly.
Pair Corralation between Axfood AB and Platzer Fastigheter
Assuming the 90 days trading horizon Axfood AB is expected to generate 3.47 times less return on investment than Platzer Fastigheter. But when comparing it to its historical volatility, Axfood AB is 1.57 times less risky than Platzer Fastigheter. It trades about 0.01 of its potential returns per unit of risk. Platzer Fastigheter Holding is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 7,737 in Platzer Fastigheter Holding on August 31, 2024 and sell it today you would earn a total of 1,063 from holding Platzer Fastigheter Holding or generate 13.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axfood AB vs. Platzer Fastigheter Holding
Performance |
| Timeline |
| Axfood AB |
| Platzer Fastigheter |
Axfood AB and Platzer Fastigheter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axfood AB and Platzer Fastigheter
The main advantage of trading using opposite Axfood AB and Platzer Fastigheter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axfood AB position performs unexpectedly, Platzer 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 Platzer Fastigheter will offset losses from the drop in Platzer Fastigheter's long position.| Axfood AB vs. Castellum AB | Axfood AB vs. Tele2 AB | Axfood AB vs. Investor AB ser | Axfood AB vs. Kinnevik Investment AB |
| Platzer Fastigheter vs. Lohilo Foods AB | Platzer Fastigheter vs. Vitec Software Group | Platzer Fastigheter vs. TradeDoubler AB | Platzer Fastigheter vs. Axfood 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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