Correlation Between Fast Ejendom and HH International
Can any of the company-specific risk be diversified away by investing in both Fast Ejendom and HH International 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 HH International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fast Ejendom and HH International AS, you can compare the effects of market volatilities on Fast Ejendom and HH International 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 HH International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fast Ejendom and HH International.
Diversification Opportunities for Fast Ejendom and HH International
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fast and HH International is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Fast Ejendom and HH International AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HH International 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 HH International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HH International has no effect on the direction of Fast Ejendom i.e., Fast Ejendom and HH International go up and down completely randomly.
Pair Corralation between Fast Ejendom and HH International
Assuming the 90 days trading horizon Fast Ejendom is expected to generate 0.81 times more return on investment than HH International. However, Fast Ejendom is 1.24 times less risky than HH International. It trades about 0.01 of its potential returns per unit of risk. HH International AS is currently generating about -0.01 per unit of risk. If you would invest 12,000 in Fast Ejendom on September 3, 2024 and sell it today you would lose (300.00) from holding Fast Ejendom or give up 2.5% 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. HH International AS
Performance |
| Timeline |
| Fast Ejendom |
| HH International |
Fast Ejendom and HH International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fast Ejendom and HH International
The main advantage of trading using opposite Fast Ejendom and HH International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fast Ejendom position performs unexpectedly, HH International 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 HH International will offset losses from the drop in HH International's long position.| Fast Ejendom vs. Prime Office AS | Fast Ejendom vs. First Farms AS | Fast Ejendom vs. Jeudan | Fast Ejendom vs. Gabriel Holding |
| HH International vs. ROCKWOOL International AS | HH International vs. Matas AS | HH International vs. DFDS AS | HH International vs. ALK Abell 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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