Correlation Between Fastighets and Kalleback Property
Can any of the company-specific risk be diversified away by investing in both Fastighets and Kalleback Property 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 Kalleback Property 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 Kalleback Property Invest, you can compare the effects of market volatilities on Fastighets and Kalleback Property 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 Kalleback Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fastighets and Kalleback Property.
Diversification Opportunities for Fastighets and Kalleback Property
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fastighets and Kalleback is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Fastighets AB Balder and Kalleback Property Invest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kalleback Property Invest 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 Kalleback Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kalleback Property Invest has no effect on the direction of Fastighets i.e., Fastighets and Kalleback Property go up and down completely randomly.
Pair Corralation between Fastighets and Kalleback Property
Assuming the 90 days trading horizon Fastighets AB Balder is expected to generate 2.71 times more return on investment than Kalleback Property. However, Fastighets is 2.71 times more volatile than Kalleback Property Invest. It trades about 0.05 of its potential returns per unit of risk. Kalleback Property Invest is currently generating about 0.09 per unit of risk. If you would invest 6,740 in Fastighets AB Balder on September 2, 2024 and sell it today you would earn a total of 1,652 from holding Fastighets AB Balder or generate 24.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fastighets AB Balder vs. Kalleback Property Invest
Performance |
| Timeline |
| Fastighets AB Balder |
| Kalleback Property Invest |
Fastighets and Kalleback Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fastighets and Kalleback Property
The main advantage of trading using opposite Fastighets and Kalleback Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fastighets position performs unexpectedly, Kalleback Property 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 Kalleback Property will offset losses from the drop in Kalleback Property's long position.| Fastighets vs. Fabege AB | Fastighets vs. Wihlborgs Fastigheter AB | Fastighets vs. Castellum AB | Fastighets vs. Nyfosa AB |
| Kalleback Property vs. Fastighets AB Balder | Kalleback Property vs. Fabege AB | Kalleback Property vs. Wihlborgs Fastigheter AB | Kalleback Property vs. Castellum 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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