Correlation Between Castellum and Kalleback Property
Can any of the company-specific risk be diversified away by investing in both Castellum 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 Castellum and Kalleback Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Castellum AB and Kalleback Property Invest, you can compare the effects of market volatilities on Castellum 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 Castellum with a short position of Kalleback Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Castellum and Kalleback Property.
Diversification Opportunities for Castellum and Kalleback Property
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Castellum and Kalleback is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Castellum AB 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 Castellum 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 Castellum AB 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 Castellum i.e., Castellum and Kalleback Property go up and down completely randomly.
Pair Corralation between Castellum and Kalleback Property
Assuming the 90 days trading horizon Castellum AB is expected to under-perform the Kalleback Property. In addition to that, Castellum is 2.24 times more volatile than Kalleback Property Invest. It trades about -0.01 of its total potential returns per unit of risk. Kalleback Property Invest is currently generating about 0.09 per unit of volatility. If you would invest 15,195 in Kalleback Property Invest on September 2, 2024 and sell it today you would earn a total of 2,605 from holding Kalleback Property Invest or generate 17.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Castellum AB vs. Kalleback Property Invest
Performance |
| Timeline |
| Castellum AB |
| Kalleback Property Invest |
Castellum and Kalleback Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Castellum and Kalleback Property
The main advantage of trading using opposite Castellum and Kalleback Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Castellum 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.The idea behind Castellum AB and Kalleback Property Invest pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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