Correlation Between Corem Property and K Fast
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By analyzing existing cross correlation between Corem Property Group and K Fast Holding AB, you can compare the effects of market volatilities on Corem Property 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 Corem Property with a short position of K Fast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corem Property and K Fast.
Diversification Opportunities for Corem Property and K Fast
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Corem and KFAST-B is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Corem Property Group 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 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 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 Corem Property i.e., Corem Property and K Fast go up and down completely randomly.
Pair Corralation between Corem Property and K Fast
Assuming the 90 days trading horizon Corem Property Group is expected to generate 0.53 times more return on investment than K Fast. However, Corem Property Group is 1.9 times less risky than K Fast. It trades about 0.06 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 17,823 in Corem Property Group on September 4, 2024 and sell it today you would earn a total of 9,277 from holding Corem Property Group or generate 52.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corem Property Group vs. K Fast Holding AB
Performance |
| Timeline |
| Corem Property Group |
| K Fast Holding |
Corem Property and K Fast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corem Property and K Fast
The main advantage of trading using opposite Corem Property and K Fast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corem Property 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.The idea behind Corem Property Group and K Fast Holding AB 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.| 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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