Correlation Between Dios Fastigheter and Logistea
Can any of the company-specific risk be diversified away by investing in both Dios Fastigheter and Logistea 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 Logistea 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 Logistea AB Series, you can compare the effects of market volatilities on Dios Fastigheter and Logistea 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 Logistea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dios Fastigheter and Logistea.
Diversification Opportunities for Dios Fastigheter and Logistea
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dios and Logistea is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Dios Fastigheter AB and Logistea AB Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logistea AB Series 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 Logistea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logistea AB Series has no effect on the direction of Dios Fastigheter i.e., Dios Fastigheter and Logistea go up and down completely randomly.
Pair Corralation between Dios Fastigheter and Logistea
Assuming the 90 days trading horizon Dios Fastigheter AB is expected to under-perform the Logistea. But the stock apears to be less risky and, when comparing its historical volatility, Dios Fastigheter AB is 1.49 times less risky than Logistea. The stock trades about -0.07 of its potential returns per unit of risk. The Logistea AB Series is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,586 in Logistea AB Series on August 29, 2024 and sell it today you would lose (6.00) from holding Logistea AB Series or give up 0.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dios Fastigheter AB vs. Logistea AB Series
Performance |
| Timeline |
| Dios Fastigheter |
| Logistea AB Series |
Dios Fastigheter and Logistea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dios Fastigheter and Logistea
The main advantage of trading using opposite Dios Fastigheter and Logistea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dios Fastigheter position performs unexpectedly, Logistea 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 Logistea will offset losses from the drop in Logistea'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 |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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