Correlation Between Fastator and SBB-B
Can any of the company-specific risk be diversified away by investing in both Fastator and SBB-B 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 Fastator and SBB-B into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fastator AB and Samhllsbyggnadsbolaget i Norden, you can compare the effects of market volatilities on Fastator and SBB-B 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 Fastator with a short position of SBB-B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fastator and SBB-B.
Diversification Opportunities for Fastator and SBB-B
Poor diversification
The 3 months correlation between Fastator and SBB-B is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Fastator AB and Samhllsbyggnadsbolaget i Norde in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samhllsbyggnadsbolaget and Fastator 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 Fastator AB are associated (or correlated) with SBB-B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samhllsbyggnadsbolaget has no effect on the direction of Fastator i.e., Fastator and SBB-B go up and down completely randomly.
Pair Corralation between Fastator and SBB-B
Assuming the 90 days trading horizon Fastator AB is expected to under-perform the SBB-B. In addition to that, Fastator is 1.05 times more volatile than Samhllsbyggnadsbolaget i Norden. It trades about -0.04 of its total potential returns per unit of risk. Samhllsbyggnadsbolaget i Norden is currently generating about -0.01 per unit of volatility. If you would invest 1,495 in Samhllsbyggnadsbolaget i Norden on August 28, 2024 and sell it today you would lose (1,087) from holding Samhllsbyggnadsbolaget i Norden or give up 72.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fastator AB vs. Samhllsbyggnadsbolaget i Norde
Performance |
| Timeline |
| Fastator AB |
| Samhllsbyggnadsbolaget |
Fastator and SBB-B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fastator and SBB-B
The main advantage of trading using opposite Fastator and SBB-B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fastator position performs unexpectedly, SBB-B 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 SBB-B will offset losses from the drop in SBB-B's long position.| Fastator vs. FastPartner AB | Fastator vs. Svolder AB | Fastator vs. Fastighets AB Balder | Fastator vs. Cibus Nordic Real |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |