Correlation Between Fast Ejendom and Stenocare
Can any of the company-specific risk be diversified away by investing in both Fast Ejendom and Stenocare 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 Stenocare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fast Ejendom and Stenocare AS, you can compare the effects of market volatilities on Fast Ejendom and Stenocare 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 Stenocare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fast Ejendom and Stenocare.
Diversification Opportunities for Fast Ejendom and Stenocare
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fast and Stenocare is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Fast Ejendom and Stenocare AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stenocare AS 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 Stenocare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stenocare AS has no effect on the direction of Fast Ejendom i.e., Fast Ejendom and Stenocare go up and down completely randomly.
Pair Corralation between Fast Ejendom and Stenocare
Assuming the 90 days trading horizon Fast Ejendom is expected to generate 0.32 times more return on investment than Stenocare. However, Fast Ejendom is 3.15 times less risky than Stenocare. It trades about 0.01 of its potential returns per unit of risk. Stenocare AS is currently generating about -0.03 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fast Ejendom vs. Stenocare AS
Performance |
| Timeline |
| Fast Ejendom |
| Stenocare AS |
Fast Ejendom and Stenocare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fast Ejendom and Stenocare
The main advantage of trading using opposite Fast Ejendom and Stenocare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fast Ejendom position performs unexpectedly, Stenocare 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 Stenocare will offset losses from the drop in Stenocare's long position.| Fast Ejendom vs. Prime Office AS | Fast Ejendom vs. First Farms AS | Fast Ejendom vs. Jeudan | Fast Ejendom vs. Gabriel Holding |
| Stenocare vs. Bavarian Nordic | Stenocare vs. Investeringsselskabet Luxor AS | Stenocare vs. cBrain AS | Stenocare vs. Fast Ejendom |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |