Correlation Between FastPartner and AB Sagax
Can any of the company-specific risk be diversified away by investing in both FastPartner and AB Sagax 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 FastPartner and AB Sagax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FastPartner AB and AB Sagax, you can compare the effects of market volatilities on FastPartner and AB Sagax 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 FastPartner with a short position of AB Sagax. Check out your portfolio center. Please also check ongoing floating volatility patterns of FastPartner and AB Sagax.
Diversification Opportunities for FastPartner and AB Sagax
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FastPartner and SAGA-D is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding FastPartner AB and AB Sagax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AB Sagax and FastPartner 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 FastPartner AB are associated (or correlated) with AB Sagax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AB Sagax has no effect on the direction of FastPartner i.e., FastPartner and AB Sagax go up and down completely randomly.
Pair Corralation between FastPartner and AB Sagax
Assuming the 90 days trading horizon FastPartner is expected to generate 4.42 times less return on investment than AB Sagax. In addition to that, FastPartner is 2.78 times more volatile than AB Sagax. It trades about 0.01 of its total potential returns per unit of risk. AB Sagax is currently generating about 0.07 per unit of volatility. If you would invest 2,295 in AB Sagax on September 3, 2024 and sell it today you would earn a total of 885.00 from holding AB Sagax or generate 38.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FastPartner AB vs. AB Sagax
Performance |
| Timeline |
| FastPartner AB |
| AB Sagax |
FastPartner and AB Sagax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FastPartner and AB Sagax
The main advantage of trading using opposite FastPartner and AB Sagax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FastPartner position performs unexpectedly, AB Sagax 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 AB Sagax will offset losses from the drop in AB Sagax's long position.| FastPartner vs. Atrium Ljungberg AB | FastPartner vs. Platzer Fastigheter Holding | FastPartner vs. Nyfosa AB | FastPartner vs. Fabege AB |
| AB Sagax vs. Cibus Nordic Real | AB Sagax vs. Samhaellsbyggnadsbolaget i Norden | AB Sagax vs. ALM Equity AB | AB Sagax vs. Castellum 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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