Correlation Between Fabege AB and Brinova Fastigheter
Can any of the company-specific risk be diversified away by investing in both Fabege AB and Brinova Fastigheter 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 Fabege AB and Brinova Fastigheter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fabege AB and Brinova Fastigheter AB, you can compare the effects of market volatilities on Fabege AB and Brinova Fastigheter 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 Fabege AB with a short position of Brinova Fastigheter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fabege AB and Brinova Fastigheter.
Diversification Opportunities for Fabege AB and Brinova Fastigheter
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Fabege and Brinova is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Fabege AB and Brinova Fastigheter AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brinova Fastigheter and Fabege AB 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 Fabege AB are associated (or correlated) with Brinova Fastigheter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brinova Fastigheter has no effect on the direction of Fabege AB i.e., Fabege AB and Brinova Fastigheter go up and down completely randomly.
Pair Corralation between Fabege AB and Brinova Fastigheter
Assuming the 90 days trading horizon Fabege AB is expected to generate 0.99 times more return on investment than Brinova Fastigheter. However, Fabege AB is 1.01 times less risky than Brinova Fastigheter. It trades about 0.05 of its potential returns per unit of risk. Brinova Fastigheter AB is currently generating about -0.11 per unit of risk. If you would invest 8,375 in Fabege AB on November 30, 2024 and sell it today you would earn a total of 215.00 from holding Fabege AB or generate 2.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Fabege AB vs. Brinova Fastigheter AB
Performance |
| Timeline |
| Fabege AB |
| Brinova Fastigheter |
Fabege AB and Brinova Fastigheter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fabege AB and Brinova Fastigheter
The main advantage of trading using opposite Fabege AB and Brinova Fastigheter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fabege AB position performs unexpectedly, Brinova Fastigheter 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 Brinova Fastigheter will offset losses from the drop in Brinova Fastigheter's long position.| Fabege AB vs. Castellum AB | Fabege AB vs. Fastighets AB Balder | Fabege AB vs. Wihlborgs Fastigheter AB | Fabege AB vs. Hufvudstaden AB |
| Brinova Fastigheter vs. Catena AB | Brinova Fastigheter vs. Dios Fastigheter AB | Brinova Fastigheter vs. Wihlborgs Fastigheter AB | Brinova Fastigheter vs. Fabege 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |