Correlation Between Eastnine and HEBA Fastighets
Can any of the company-specific risk be diversified away by investing in both Eastnine and HEBA Fastighets 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 Eastnine and HEBA Fastighets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastnine AB and HEBA Fastighets AB, you can compare the effects of market volatilities on Eastnine and HEBA Fastighets 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 Eastnine with a short position of HEBA Fastighets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastnine and HEBA Fastighets.
Diversification Opportunities for Eastnine and HEBA Fastighets
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Eastnine and HEBA is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Eastnine AB and HEBA Fastighets AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEBA Fastighets AB and Eastnine 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 Eastnine AB are associated (or correlated) with HEBA Fastighets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEBA Fastighets AB has no effect on the direction of Eastnine i.e., Eastnine and HEBA Fastighets go up and down completely randomly.
Pair Corralation between Eastnine and HEBA Fastighets
Assuming the 90 days trading horizon Eastnine AB is expected to generate 1.08 times more return on investment than HEBA Fastighets. However, Eastnine is 1.08 times more volatile than HEBA Fastighets AB. It trades about 0.12 of its potential returns per unit of risk. HEBA Fastighets AB is currently generating about -0.07 per unit of risk. If you would invest 4,273 in Eastnine AB on September 12, 2024 and sell it today you would earn a total of 531.00 from holding Eastnine AB or generate 12.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastnine AB vs. HEBA Fastighets AB
Performance |
| Timeline |
| Eastnine AB |
| HEBA Fastighets AB |
Eastnine and HEBA Fastighets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastnine and HEBA Fastighets
The main advantage of trading using opposite Eastnine and HEBA Fastighets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastnine position performs unexpectedly, HEBA Fastighets 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 HEBA Fastighets will offset losses from the drop in HEBA Fastighets' long position.| Eastnine vs. Atrium Ljungberg AB | Eastnine vs. Dios Fastigheter AB | Eastnine vs. HEBA Fastighets AB | Eastnine vs. NP3 Fastigheter AB |
| HEBA Fastighets vs. Corem Property Group | HEBA Fastighets vs. ALM Equity AB | HEBA Fastighets vs. Fastighets AB Balder | HEBA Fastighets vs. KABE Group 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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