Correlation Between Catena AB and K Fast
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By analyzing existing cross correlation between Catena AB and K Fast Holding AB, you can compare the effects of market volatilities on Catena AB and K Fast 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 Catena AB with a short position of K Fast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catena AB and K Fast.
Diversification Opportunities for Catena AB and K Fast
Almost no diversification
The 3 months correlation between Catena and KFAST-B is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Catena AB and K Fast Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on K Fast Holding and Catena 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 Catena AB are associated (or correlated) with K Fast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of K Fast Holding has no effect on the direction of Catena AB i.e., Catena AB and K Fast go up and down completely randomly.
Pair Corralation between Catena AB and K Fast
Assuming the 90 days trading horizon Catena AB is expected to generate 0.6 times more return on investment than K Fast. However, Catena AB is 1.65 times less risky than K Fast. It trades about 0.04 of its potential returns per unit of risk. K Fast Holding AB is currently generating about 0.0 per unit of risk. If you would invest 38,111 in Catena AB on September 3, 2024 and sell it today you would earn a total of 10,789 from holding Catena AB or generate 28.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catena AB vs. K Fast Holding AB
Performance |
| Timeline |
| Catena AB |
| K Fast Holding |
Catena AB and K Fast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catena AB and K Fast
The main advantage of trading using opposite Catena AB and K Fast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catena AB position performs unexpectedly, K Fast 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 K Fast will offset losses from the drop in K Fast's long position.| Catena AB vs. Fastighets AB Balder | Catena AB vs. Fabege AB | Catena AB vs. Wihlborgs Fastigheter AB | Catena AB vs. AB Sagax |
| K Fast vs. Fastighets AB Balder | K Fast vs. Nyfosa AB | K Fast vs. Dios Fastigheter AB | K Fast vs. Corem Property Group |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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