Correlation Between Fastighetsbolaget and TradeDoubler
Can any of the company-specific risk be diversified away by investing in both Fastighetsbolaget and TradeDoubler 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 Fastighetsbolaget and TradeDoubler into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fastighetsbolaget Emilshus AB and TradeDoubler AB, you can compare the effects of market volatilities on Fastighetsbolaget and TradeDoubler 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 Fastighetsbolaget with a short position of TradeDoubler. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fastighetsbolaget and TradeDoubler.
Diversification Opportunities for Fastighetsbolaget and TradeDoubler
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fastighetsbolaget and TradeDoubler is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Fastighetsbolaget Emilshus AB and TradeDoubler AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TradeDoubler AB and Fastighetsbolaget 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 Fastighetsbolaget Emilshus AB are associated (or correlated) with TradeDoubler. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TradeDoubler AB has no effect on the direction of Fastighetsbolaget i.e., Fastighetsbolaget and TradeDoubler go up and down completely randomly.
Pair Corralation between Fastighetsbolaget and TradeDoubler
Assuming the 90 days trading horizon Fastighetsbolaget is expected to generate 2.58 times less return on investment than TradeDoubler. But when comparing it to its historical volatility, Fastighetsbolaget Emilshus AB is 1.97 times less risky than TradeDoubler. It trades about 0.17 of its potential returns per unit of risk. TradeDoubler AB is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 362.00 in TradeDoubler AB on November 30, 2024 and sell it today you would earn a total of 188.00 from holding TradeDoubler AB or generate 51.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fastighetsbolaget Emilshus AB vs. TradeDoubler AB
Performance |
| Timeline |
| Fastighetsbolaget |
| TradeDoubler AB |
Fastighetsbolaget and TradeDoubler Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fastighetsbolaget and TradeDoubler
The main advantage of trading using opposite Fastighetsbolaget and TradeDoubler positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fastighetsbolaget position performs unexpectedly, TradeDoubler 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 TradeDoubler will offset losses from the drop in TradeDoubler's long position.| Fastighetsbolaget vs. Svenska Handelsbanken AB | Fastighetsbolaget vs. Online Brands Nordic | Fastighetsbolaget vs. FormPipe Software AB | Fastighetsbolaget vs. Havsfrun Investment AB |
| TradeDoubler vs. Precise Biometrics AB | TradeDoubler vs. BE Group AB | TradeDoubler vs. Eniro AB | TradeDoubler vs. Softronic 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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