Correlation Between Fabege AB and Corem Property
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By analyzing existing cross correlation between Fabege AB and Corem Property Group, you can compare the effects of market volatilities on Fabege AB and Corem Property 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 Corem Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fabege AB and Corem Property.
Diversification Opportunities for Fabege AB and Corem Property
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fabege and Corem is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Fabege AB and Corem Property Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corem Property Group 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 Corem Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corem Property Group has no effect on the direction of Fabege AB i.e., Fabege AB and Corem Property go up and down completely randomly.
Pair Corralation between Fabege AB and Corem Property
Assuming the 90 days trading horizon Fabege AB is expected to under-perform the Corem Property. In addition to that, Fabege AB is 1.38 times more volatile than Corem Property Group. It trades about -0.03 of its total potential returns per unit of risk. Corem Property Group is currently generating about 0.11 per unit of volatility. If you would invest 23,152 in Corem Property Group on September 3, 2024 and sell it today you would earn a total of 3,898 from holding Corem Property Group or generate 16.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fabege AB vs. Corem Property Group
Performance |
| Timeline |
| Fabege AB |
| Corem Property Group |
Fabege AB and Corem Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fabege AB and Corem Property
The main advantage of trading using opposite Fabege AB and Corem Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fabege AB position performs unexpectedly, Corem Property 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 Corem Property will offset losses from the drop in Corem Property'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 |
| Corem Property vs. AB Sagax | Corem Property vs. Volati AB | Corem Property vs. Dios Fastigheter AB | Corem Property vs. NP3 Fastigheter 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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