Correlation Between Fast Ejendom and EgnsINVEST Ejendomme
Can any of the company-specific risk be diversified away by investing in both Fast Ejendom and EgnsINVEST Ejendomme 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 EgnsINVEST Ejendomme into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fast Ejendom and EgnsINVEST Ejendomme Tyskland, you can compare the effects of market volatilities on Fast Ejendom and EgnsINVEST Ejendomme 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 EgnsINVEST Ejendomme. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fast Ejendom and EgnsINVEST Ejendomme.
Diversification Opportunities for Fast Ejendom and EgnsINVEST Ejendomme
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fast and EgnsINVEST is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Fast Ejendom and EgnsINVEST Ejendomme Tyskland in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EgnsINVEST Ejendomme 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 EgnsINVEST Ejendomme. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EgnsINVEST Ejendomme has no effect on the direction of Fast Ejendom i.e., Fast Ejendom and EgnsINVEST Ejendomme go up and down completely randomly.
Pair Corralation between Fast Ejendom and EgnsINVEST Ejendomme
Assuming the 90 days trading horizon Fast Ejendom is expected to generate 1.05 times more return on investment than EgnsINVEST Ejendomme. However, Fast Ejendom is 1.05 times more volatile than EgnsINVEST Ejendomme Tyskland. It trades about 0.14 of its potential returns per unit of risk. EgnsINVEST Ejendomme Tyskland is currently generating about -0.02 per unit of risk. If you would invest 11,800 in Fast Ejendom on September 14, 2024 and sell it today you would earn a total of 500.00 from holding Fast Ejendom or generate 4.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fast Ejendom vs. EgnsINVEST Ejendomme Tyskland
Performance |
| Timeline |
| Fast Ejendom |
| EgnsINVEST Ejendomme |
Fast Ejendom and EgnsINVEST Ejendomme Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fast Ejendom and EgnsINVEST Ejendomme
The main advantage of trading using opposite Fast Ejendom and EgnsINVEST Ejendomme positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fast Ejendom position performs unexpectedly, EgnsINVEST Ejendomme 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 EgnsINVEST Ejendomme will offset losses from the drop in EgnsINVEST Ejendomme's long position.| Fast Ejendom vs. Prime Office AS | Fast Ejendom vs. First Farms AS | Fast Ejendom vs. Jeudan | Fast Ejendom vs. Gabriel Holding |
| EgnsINVEST Ejendomme vs. Nordea Bank Abp | EgnsINVEST Ejendomme vs. Prime Office AS | EgnsINVEST Ejendomme vs. Dataproces Group AS | EgnsINVEST Ejendomme vs. Nordfyns Bank AS |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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