Correlation Between FastPartner and Fabege AB
Can any of the company-specific risk be diversified away by investing in both FastPartner and Fabege 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 FastPartner and Fabege AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FastPartner AB Series and Fabege AB, you can compare the effects of market volatilities on FastPartner and Fabege 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 FastPartner with a short position of Fabege AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of FastPartner and Fabege AB.
Diversification Opportunities for FastPartner and Fabege AB
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FastPartner and Fabege is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding FastPartner AB Series and Fabege AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fabege AB 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 Series are associated (or correlated) with Fabege AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fabege AB has no effect on the direction of FastPartner i.e., FastPartner and Fabege AB go up and down completely randomly.
Pair Corralation between FastPartner and Fabege AB
Assuming the 90 days trading horizon FastPartner AB Series is expected to generate 0.63 times more return on investment than Fabege AB. However, FastPartner AB Series is 1.58 times less risky than Fabege AB. It trades about 0.13 of its potential returns per unit of risk. Fabege AB is currently generating about -0.05 per unit of risk. If you would invest 5,122 in FastPartner AB Series on September 12, 2024 and sell it today you would earn a total of 2,048 from holding FastPartner AB Series or generate 39.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FastPartner AB Series vs. Fabege AB
Performance |
| Timeline |
| FastPartner AB Series |
| Fabege AB |
FastPartner and Fabege AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FastPartner and Fabege AB
The main advantage of trading using opposite FastPartner and Fabege AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FastPartner position performs unexpectedly, Fabege 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 Fabege AB will offset losses from the drop in Fabege AB's long position.| FastPartner vs. Fabege AB | FastPartner vs. Castellum AB | FastPartner vs. Wallenstam AB | FastPartner vs. Fastighets AB Balder |
| Fabege AB vs. Platzer Fastigheter Holding | Fabege AB vs. Catena AB | Fabege AB vs. AB Sagax | Fabege AB vs. Nyfosa 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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