Correlation Between Corem Property and AB Sagax
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By analyzing existing cross correlation between Corem Property Group and AB Sagax, you can compare the effects of market volatilities on Corem Property and AB Sagax 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 AB Sagax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corem Property and AB Sagax.
Diversification Opportunities for Corem Property and AB Sagax
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Corem and SAGA-D is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Corem Property Group and AB Sagax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AB Sagax 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 AB Sagax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AB Sagax has no effect on the direction of Corem Property i.e., Corem Property and AB Sagax go up and down completely randomly.
Pair Corralation between Corem Property and AB Sagax
Assuming the 90 days trading horizon Corem Property Group is expected to generate 1.7 times more return on investment than AB Sagax. However, Corem Property is 1.7 times more volatile than AB Sagax. It trades about -0.04 of its potential returns per unit of risk. AB Sagax is currently generating about -0.22 per unit of risk. If you would invest 26,650 in Corem Property Group on August 28, 2024 and sell it today you would lose (300.00) from holding Corem Property Group or give up 1.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corem Property Group vs. AB Sagax
Performance |
| Timeline |
| Corem Property Group |
| AB Sagax |
Corem Property and AB Sagax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corem Property and AB Sagax
The main advantage of trading using opposite Corem Property and AB Sagax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corem Property position performs unexpectedly, AB Sagax 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 AB Sagax will offset losses from the drop in AB Sagax's 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 |
| AB Sagax vs. AB Sagax | AB Sagax vs. Samhaellsbyggnadsbolaget i Norden | AB Sagax vs. AB Sagax | AB Sagax vs. Fastighets AB Balder |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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