Correlation Between Dios Fastigheter and Corem Property
Can any of the company-specific risk be diversified away by investing in both Dios Fastigheter and Corem Property 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 Dios Fastigheter and Corem Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dios Fastigheter AB and Corem Property Group, you can compare the effects of market volatilities on Dios Fastigheter and Corem Property 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 Dios Fastigheter with a short position of Corem Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dios Fastigheter and Corem Property.
Diversification Opportunities for Dios Fastigheter and Corem Property
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dios and Corem is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Dios Fastigheter AB and Corem Property Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corem Property Group and Dios 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 Dios Fastigheter AB are associated (or correlated) with Corem Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corem Property Group has no effect on the direction of Dios Fastigheter i.e., Dios Fastigheter and Corem Property go up and down completely randomly.
Pair Corralation between Dios Fastigheter and Corem Property
Assuming the 90 days trading horizon Dios Fastigheter AB is expected to generate 0.7 times more return on investment than Corem Property. However, Dios Fastigheter AB is 1.43 times less risky than Corem Property. It trades about -0.16 of its potential returns per unit of risk. Corem Property Group is currently generating about -0.22 per unit of risk. If you would invest 8,135 in Dios Fastigheter AB on August 29, 2024 and sell it today you would lose (450.00) from holding Dios Fastigheter AB or give up 5.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dios Fastigheter AB vs. Corem Property Group
Performance |
| Timeline |
| Dios Fastigheter |
| Corem Property Group |
Dios Fastigheter and Corem Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dios Fastigheter and Corem Property
The main advantage of trading using opposite Dios Fastigheter and Corem Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dios Fastigheter position performs unexpectedly, Corem Property 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 Corem Property will offset losses from the drop in Corem Property's long position.| Dios Fastigheter vs. Fabege AB | Dios Fastigheter vs. Wihlborgs Fastigheter AB | Dios Fastigheter vs. Castellum AB | Dios Fastigheter vs. Fastighets AB Balder |
| 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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