Correlation Between Fast Ejendom and Broendbyernes
Can any of the company-specific risk be diversified away by investing in both Fast Ejendom and Broendbyernes 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 Fast Ejendom and Broendbyernes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fast Ejendom and Broendbyernes IF Fodbold, you can compare the effects of market volatilities on Fast Ejendom and Broendbyernes 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 Fast Ejendom with a short position of Broendbyernes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fast Ejendom and Broendbyernes.
Diversification Opportunities for Fast Ejendom and Broendbyernes
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fast and Broendbyernes is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Fast Ejendom and Broendbyernes IF Fodbold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Broendbyernes IF Fodbold and Fast Ejendom 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 Fast Ejendom are associated (or correlated) with Broendbyernes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Broendbyernes IF Fodbold has no effect on the direction of Fast Ejendom i.e., Fast Ejendom and Broendbyernes go up and down completely randomly.
Pair Corralation between Fast Ejendom and Broendbyernes
Assuming the 90 days trading horizon Fast Ejendom is expected to generate 0.64 times more return on investment than Broendbyernes. However, Fast Ejendom is 1.56 times less risky than Broendbyernes. It trades about -0.08 of its potential returns per unit of risk. Broendbyernes IF Fodbold is currently generating about -0.15 per unit of risk. If you would invest 13,000 in Fast Ejendom on December 17, 2024 and sell it today you would lose (400.00) from holding Fast Ejendom or give up 3.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fast Ejendom vs. Broendbyernes IF Fodbold
Performance |
| Timeline |
| Fast Ejendom |
| Broendbyernes IF Fodbold |
Fast Ejendom and Broendbyernes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fast Ejendom and Broendbyernes
The main advantage of trading using opposite Fast Ejendom and Broendbyernes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fast Ejendom position performs unexpectedly, Broendbyernes 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 Broendbyernes will offset losses from the drop in Broendbyernes' long position.| Fast Ejendom vs. Prime Office AS | ||
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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