Correlation Between Fasadgruppen Group and Afry AB
Can any of the company-specific risk be diversified away by investing in both Fasadgruppen Group and Afry AB 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 Fasadgruppen Group and Afry AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fasadgruppen Group AB and Afry AB, you can compare the effects of market volatilities on Fasadgruppen Group and Afry AB 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 Fasadgruppen Group with a short position of Afry AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fasadgruppen Group and Afry AB.
Diversification Opportunities for Fasadgruppen Group and Afry AB
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fasadgruppen and Afry is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Fasadgruppen Group AB and Afry AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Afry AB and Fasadgruppen Group 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 Fasadgruppen Group AB are associated (or correlated) with Afry AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Afry AB has no effect on the direction of Fasadgruppen Group i.e., Fasadgruppen Group and Afry AB go up and down completely randomly.
Pair Corralation between Fasadgruppen Group and Afry AB
Assuming the 90 days horizon Fasadgruppen Group AB is expected to under-perform the Afry AB. In addition to that, Fasadgruppen Group is 1.56 times more volatile than Afry AB. It trades about -0.14 of its total potential returns per unit of risk. Afry AB is currently generating about -0.15 per unit of volatility. If you would invest 15,970 in Afry AB on September 1, 2024 and sell it today you would lose (810.00) from holding Afry AB or give up 5.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fasadgruppen Group AB vs. Afry AB
Performance |
| Timeline |
| Fasadgruppen Group |
| Afry AB |
Fasadgruppen Group and Afry AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fasadgruppen Group and Afry AB
The main advantage of trading using opposite Fasadgruppen Group and Afry AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fasadgruppen Group position performs unexpectedly, Afry AB 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 Afry AB will offset losses from the drop in Afry AB's long position.| Fasadgruppen Group vs. Green Landscaping Group | Fasadgruppen Group vs. Volati AB | Fasadgruppen Group vs. Instalco Intressenter AB | Fasadgruppen Group vs. Sdiptech AB |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |