Correlation Between Corem Property and Brinova Fastigheter
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By analyzing existing cross correlation between Corem Property Group and Brinova Fastigheter AB, you can compare the effects of market volatilities on Corem Property and Brinova Fastigheter 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 Brinova Fastigheter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corem Property and Brinova Fastigheter.
Diversification Opportunities for Corem Property and Brinova Fastigheter
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Corem and Brinova is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Corem Property Group and Brinova Fastigheter AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brinova Fastigheter 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 Brinova Fastigheter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brinova Fastigheter has no effect on the direction of Corem Property i.e., Corem Property and Brinova Fastigheter go up and down completely randomly.
Pair Corralation between Corem Property and Brinova Fastigheter
Assuming the 90 days trading horizon Corem Property Group is expected to generate 0.49 times more return on investment than Brinova Fastigheter. However, Corem Property Group is 2.03 times less risky than Brinova Fastigheter. It trades about 0.01 of its potential returns per unit of risk. Brinova Fastigheter AB is currently generating about -0.35 per unit of risk. If you would invest 26,500 in Corem Property Group on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Corem Property Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Corem Property Group vs. Brinova Fastigheter AB
Performance |
| Timeline |
| Corem Property Group |
| Brinova Fastigheter |
Corem Property and Brinova Fastigheter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corem Property and Brinova Fastigheter
The main advantage of trading using opposite Corem Property and Brinova Fastigheter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corem Property position performs unexpectedly, Brinova Fastigheter 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 Brinova Fastigheter will offset losses from the drop in Brinova Fastigheter's long position.| Corem Property vs. ALM Equity AB | Corem Property vs. Fastighets AB Balder | Corem Property vs. KABE Group AB | Corem Property vs. IAR Systems Group |
| Brinova Fastigheter vs. Catena AB | Brinova Fastigheter vs. Dios Fastigheter AB | Brinova Fastigheter vs. Wihlborgs Fastigheter AB | Brinova Fastigheter vs. Fabege 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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