Correlation Between Dis Fastigheter and OPEN HOUSE
Can any of the company-specific risk be diversified away by investing in both Dis Fastigheter and OPEN HOUSE 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 Dis Fastigheter and OPEN HOUSE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dis Fastigheter AB and OPEN HOUSE GROUP, you can compare the effects of market volatilities on Dis Fastigheter and OPEN HOUSE 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 Dis Fastigheter with a short position of OPEN HOUSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dis Fastigheter and OPEN HOUSE.
Diversification Opportunities for Dis Fastigheter and OPEN HOUSE
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dis and OPEN is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Dis Fastigheter AB and OPEN HOUSE GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OPEN HOUSE GROUP and Dis Fastigheter 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 Dis Fastigheter AB are associated (or correlated) with OPEN HOUSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OPEN HOUSE GROUP has no effect on the direction of Dis Fastigheter i.e., Dis Fastigheter and OPEN HOUSE go up and down completely randomly.
Pair Corralation between Dis Fastigheter and OPEN HOUSE
Assuming the 90 days horizon Dis Fastigheter AB is expected to under-perform the OPEN HOUSE. But the stock apears to be less risky and, when comparing its historical volatility, Dis Fastigheter AB is 1.3 times less risky than OPEN HOUSE. The stock trades about -0.02 of its potential returns per unit of risk. The OPEN HOUSE GROUP is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,600 in OPEN HOUSE GROUP on August 25, 2024 and sell it today you would earn a total of 860.00 from holding OPEN HOUSE GROUP or generate 33.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dis Fastigheter AB vs. OPEN HOUSE GROUP
Performance |
| Timeline |
| Dis Fastigheter AB |
| OPEN HOUSE GROUP |
Dis Fastigheter and OPEN HOUSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dis Fastigheter and OPEN HOUSE
The main advantage of trading using opposite Dis Fastigheter and OPEN HOUSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dis Fastigheter position performs unexpectedly, OPEN HOUSE 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 OPEN HOUSE will offset losses from the drop in OPEN HOUSE's long position.| Dis Fastigheter vs. Superior Plus Corp | Dis Fastigheter vs. NMI Holdings | Dis Fastigheter vs. Origin Agritech | Dis Fastigheter vs. SIVERS SEMICONDUCTORS AB |
| OPEN HOUSE vs. Superior Plus Corp | OPEN HOUSE vs. NMI Holdings | OPEN HOUSE vs. Origin Agritech | OPEN HOUSE vs. SIVERS SEMICONDUCTORS 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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