Correlation Between Corem Property and Fastighets
Can any of the company-specific risk be diversified away by investing in both Corem Property and 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 Corem Property and Fastighets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corem Property Group and Fastighets AB Balder, you can compare the effects of market volatilities on Corem Property and 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 Corem Property with a short position of Fastighets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corem Property and Fastighets.
Diversification Opportunities for Corem Property and Fastighets
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Corem and Fastighets is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Corem Property Group and Fastighets AB Balder in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fastighets AB Balder and Corem Property 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 Corem Property Group are associated (or correlated) with Fastighets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fastighets AB Balder has no effect on the direction of Corem Property i.e., Corem Property and Fastighets go up and down completely randomly.
Pair Corralation between Corem Property and Fastighets
Assuming the 90 days trading horizon Corem Property Group is expected to under-perform the Fastighets. In addition to that, Corem Property is 1.4 times more volatile than Fastighets AB Balder. It trades about -0.21 of its total potential returns per unit of risk. Fastighets AB Balder is currently generating about 0.01 per unit of volatility. If you would invest 8,126 in Fastighets AB Balder on August 28, 2024 and sell it today you would lose (24.00) from holding Fastighets AB Balder or give up 0.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corem Property Group vs. Fastighets AB Balder
Performance |
| Timeline |
| Corem Property Group |
| Fastighets AB Balder |
Corem Property and Fastighets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corem Property and Fastighets
The main advantage of trading using opposite Corem Property and Fastighets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corem Property position performs unexpectedly, 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 Fastighets will offset losses from the drop in Fastighets' long position.| Corem Property vs. Fastighets AB Balder | Corem Property vs. Nyfosa AB | Corem Property vs. Dios Fastigheter AB | Corem Property vs. Atrium Ljungberg 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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