Correlation Between FastPartner and SBB-D
Can any of the company-specific risk be diversified away by investing in both FastPartner and SBB-D 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 SBB-D into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FastPartner AB and Samhaellsbyggnadsbolaget i Norden, you can compare the effects of market volatilities on FastPartner and SBB-D 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 SBB-D. Check out your portfolio center. Please also check ongoing floating volatility patterns of FastPartner and SBB-D.
Diversification Opportunities for FastPartner and SBB-D
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between FastPartner and SBB-D is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding FastPartner AB and Samhaellsbyggnadsbolaget i Nor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samhaellsbyggnadsbol 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 SBB-D. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samhaellsbyggnadsbol has no effect on the direction of FastPartner i.e., FastPartner and SBB-D go up and down completely randomly.
Pair Corralation between FastPartner and SBB-D
Assuming the 90 days trading horizon FastPartner AB is expected to generate 1.11 times more return on investment than SBB-D. However, FastPartner is 1.11 times more volatile than Samhaellsbyggnadsbolaget i Norden. It trades about -0.18 of its potential returns per unit of risk. Samhaellsbyggnadsbolaget i Norden is currently generating about -0.42 per unit of risk. If you would invest 7,230 in FastPartner AB on December 1, 2024 and sell it today you would lose (1,030) from holding FastPartner AB or give up 14.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FastPartner AB vs. Samhaellsbyggnadsbolaget i Nor
Performance |
| Timeline |
| FastPartner AB |
| Samhaellsbyggnadsbol |
FastPartner and SBB-D Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FastPartner and SBB-D
The main advantage of trading using opposite FastPartner and SBB-D positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FastPartner position performs unexpectedly, SBB-D 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 SBB-D will offset losses from the drop in SBB-D's long position.| FastPartner vs. Atrium Ljungberg AB | FastPartner vs. Platzer Fastigheter Holding | FastPartner vs. Nyfosa AB | FastPartner vs. Fabege AB |
| SBB-D vs. Samhllsbyggnadsbolaget i Norden | SBB-D vs. Castellum AB | SBB-D vs. Cibus Nordic Real | SBB-D vs. AB Sagax |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |