Correlation Between Fast Ejendom and Harboes Bryggeri
Can any of the company-specific risk be diversified away by investing in both Fast Ejendom and Harboes Bryggeri 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 Harboes Bryggeri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fast Ejendom and Harboes Bryggeri AS, you can compare the effects of market volatilities on Fast Ejendom and Harboes Bryggeri 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 Harboes Bryggeri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fast Ejendom and Harboes Bryggeri.
Diversification Opportunities for Fast Ejendom and Harboes Bryggeri
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fast and Harboes is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Fast Ejendom and Harboes Bryggeri AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harboes Bryggeri 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 Harboes Bryggeri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harboes Bryggeri has no effect on the direction of Fast Ejendom i.e., Fast Ejendom and Harboes Bryggeri go up and down completely randomly.
Pair Corralation between Fast Ejendom and Harboes Bryggeri
Assuming the 90 days trading horizon Fast Ejendom is expected to generate 0.32 times more return on investment than Harboes Bryggeri. However, Fast Ejendom is 3.12 times less risky than Harboes Bryggeri. It trades about -0.03 of its potential returns per unit of risk. Harboes Bryggeri AS is currently generating about -0.04 per unit of risk. If you would invest 11,800 in Fast Ejendom on August 25, 2024 and sell it today you would lose (100.00) from holding Fast Ejendom or give up 0.85% 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. Harboes Bryggeri AS
Performance |
| Timeline |
| Fast Ejendom |
| Harboes Bryggeri |
Fast Ejendom and Harboes Bryggeri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fast Ejendom and Harboes Bryggeri
The main advantage of trading using opposite Fast Ejendom and Harboes Bryggeri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fast Ejendom position performs unexpectedly, Harboes Bryggeri 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 Harboes Bryggeri will offset losses from the drop in Harboes Bryggeri's long position.| Fast Ejendom vs. Prime Office AS | Fast Ejendom vs. First Farms AS | Fast Ejendom vs. Jeudan | Fast Ejendom vs. Gabriel Holding |
| Harboes Bryggeri vs. Royal Unibrew AS | Harboes Bryggeri vs. Matas AS | Harboes Bryggeri vs. Nnit AS | Harboes Bryggeri vs. DFDS 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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