Correlation Between Dios Fastigheter and Nyfosa AB
Can any of the company-specific risk be diversified away by investing in both Dios Fastigheter and Nyfosa AB 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 Nyfosa AB 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 Nyfosa AB, you can compare the effects of market volatilities on Dios Fastigheter and Nyfosa AB 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 Nyfosa AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dios Fastigheter and Nyfosa AB.
Diversification Opportunities for Dios Fastigheter and Nyfosa AB
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dios and Nyfosa is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Dios Fastigheter AB and Nyfosa AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyfosa AB 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 Nyfosa AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nyfosa AB has no effect on the direction of Dios Fastigheter i.e., Dios Fastigheter and Nyfosa AB go up and down completely randomly.
Pair Corralation between Dios Fastigheter and Nyfosa AB
Assuming the 90 days trading horizon Dios Fastigheter AB is expected to generate 0.83 times more return on investment than Nyfosa AB. However, Dios Fastigheter AB is 1.2 times less risky than Nyfosa AB. It trades about -0.13 of its potential returns per unit of risk. Nyfosa AB is currently generating about -0.3 per unit of risk. If you would invest 8,135 in Dios Fastigheter AB on August 27, 2024 and sell it today you would lose (350.00) from holding Dios Fastigheter AB or give up 4.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dios Fastigheter AB vs. Nyfosa AB
Performance |
| Timeline |
| Dios Fastigheter |
| Nyfosa AB |
Dios Fastigheter and Nyfosa AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dios Fastigheter and Nyfosa AB
The main advantage of trading using opposite Dios Fastigheter and Nyfosa AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dios Fastigheter position performs unexpectedly, Nyfosa AB 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 Nyfosa AB will offset losses from the drop in Nyfosa AB's long position.| Dios Fastigheter vs. Fastighets AB Balder | Dios Fastigheter vs. Fabege AB | Dios Fastigheter vs. AB Sagax |
| Nyfosa AB vs. AstraZeneca PLC | Nyfosa AB vs. Investor AB ser | Nyfosa AB vs. Investor AB ser | Nyfosa AB vs. Atlas Copco 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.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |