Correlation Between Fastighets and HEBA Fastighets
Can any of the company-specific risk be diversified away by investing in both Fastighets and HEBA Fastighets 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 Fastighets and HEBA Fastighets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fastighets AB Balder and HEBA Fastighets AB, you can compare the effects of market volatilities on Fastighets and HEBA 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 Fastighets with a short position of HEBA Fastighets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fastighets and HEBA Fastighets.
Diversification Opportunities for Fastighets and HEBA Fastighets
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fastighets and HEBA is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Fastighets AB Balder and HEBA Fastighets AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEBA Fastighets AB and Fastighets 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 Fastighets AB Balder are associated (or correlated) with HEBA Fastighets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEBA Fastighets AB has no effect on the direction of Fastighets i.e., Fastighets and HEBA Fastighets go up and down completely randomly.
Pair Corralation between Fastighets and HEBA Fastighets
Assuming the 90 days trading horizon Fastighets AB Balder is expected to under-perform the HEBA Fastighets. In addition to that, Fastighets is 1.12 times more volatile than HEBA Fastighets AB. It trades about -0.15 of its total potential returns per unit of risk. HEBA Fastighets AB is currently generating about 0.0 per unit of volatility. If you would invest 3,280 in HEBA Fastighets AB on September 13, 2024 and sell it today you would lose (5.00) from holding HEBA Fastighets AB or give up 0.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fastighets AB Balder vs. HEBA Fastighets AB
Performance |
| Timeline |
| Fastighets AB Balder |
| HEBA Fastighets AB |
Fastighets and HEBA Fastighets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fastighets and HEBA Fastighets
The main advantage of trading using opposite Fastighets and HEBA Fastighets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fastighets position performs unexpectedly, HEBA 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 HEBA Fastighets will offset losses from the drop in HEBA Fastighets' long position.| Fastighets vs. Castellum AB | Fastighets vs. Fabege AB | Fastighets vs. AB Sagax | Fastighets vs. Wallenstam AB |
| HEBA Fastighets vs. Atrium Ljungberg AB | HEBA Fastighets vs. Dios Fastigheter AB | HEBA Fastighets vs. Wihlborgs Fastigheter AB | HEBA Fastighets vs. Hufvudstaden 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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