Correlation Between FOM Technologies and Fast Ejendom
Can any of the company-specific risk be diversified away by investing in both FOM Technologies and Fast Ejendom 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 FOM Technologies and Fast Ejendom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FOM Technologies AS and Fast Ejendom, you can compare the effects of market volatilities on FOM Technologies and Fast Ejendom 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 FOM Technologies with a short position of Fast Ejendom. Check out your portfolio center. Please also check ongoing floating volatility patterns of FOM Technologies and Fast Ejendom.
Diversification Opportunities for FOM Technologies and Fast Ejendom
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FOM and Fast is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding FOM Technologies AS and Fast Ejendom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fast Ejendom and FOM Technologies 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 FOM Technologies AS are associated (or correlated) with Fast Ejendom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fast Ejendom has no effect on the direction of FOM Technologies i.e., FOM Technologies and Fast Ejendom go up and down completely randomly.
Pair Corralation between FOM Technologies and Fast Ejendom
Assuming the 90 days trading horizon FOM Technologies is expected to generate 4.4 times less return on investment than Fast Ejendom. In addition to that, FOM Technologies is 2.25 times more volatile than Fast Ejendom. It trades about 0.02 of its total potential returns per unit of risk. Fast Ejendom is currently generating about 0.23 per unit of volatility. If you would invest 11,800 in Fast Ejendom on September 13, 2024 and sell it today you would earn a total of 800.00 from holding Fast Ejendom or generate 6.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FOM Technologies AS vs. Fast Ejendom
Performance |
| Timeline |
| FOM Technologies |
| Fast Ejendom |
FOM Technologies and Fast Ejendom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FOM Technologies and Fast Ejendom
The main advantage of trading using opposite FOM Technologies and Fast Ejendom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FOM Technologies position performs unexpectedly, Fast Ejendom 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 Fast Ejendom will offset losses from the drop in Fast Ejendom's long position.| FOM Technologies vs. Vestas Wind Systems | FOM Technologies vs. Brd Klee AS | FOM Technologies vs. Hydract AS |
| Fast Ejendom vs. Prime Office AS | Fast Ejendom vs. First Farms AS | Fast Ejendom vs. Jeudan | Fast Ejendom vs. Gabriel Holding |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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