Correlation Between FastPartner and FastPartner
Can any of the company-specific risk be diversified away by investing in both FastPartner and FastPartner 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 FastPartner 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 FastPartner AB, you can compare the effects of market volatilities on FastPartner and FastPartner 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 FastPartner. Check out your portfolio center. Please also check ongoing floating volatility patterns of FastPartner and FastPartner.
Diversification Opportunities for FastPartner and FastPartner
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FastPartner and FastPartner is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding FastPartner AB Series and FastPartner AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FastPartner 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 FastPartner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FastPartner AB has no effect on the direction of FastPartner i.e., FastPartner and FastPartner go up and down completely randomly.
Pair Corralation between FastPartner and FastPartner
Assuming the 90 days trading horizon FastPartner AB Series is expected to generate 0.8 times more return on investment than FastPartner. However, FastPartner AB Series is 1.25 times less risky than FastPartner. It trades about 0.2 of its potential returns per unit of risk. FastPartner AB is currently generating about -0.18 per unit of risk. If you would invest 6,490 in FastPartner AB Series on December 1, 2024 and sell it today you would earn a total of 870.00 from holding FastPartner AB Series or generate 13.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
FastPartner AB Series vs. FastPartner AB
Performance |
| Timeline |
| FastPartner AB Series |
| FastPartner AB |
FastPartner and FastPartner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FastPartner and FastPartner
The main advantage of trading using opposite FastPartner and FastPartner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FastPartner position performs unexpectedly, FastPartner 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 FastPartner will offset losses from the drop in FastPartner's long position.| FastPartner vs. FastPartner AB | FastPartner vs. Samhaellsbyggnadsbolaget i Norden | FastPartner vs. AB Sagax | FastPartner vs. Atrium Ljungberg AB |
| FastPartner vs. Atrium Ljungberg AB | FastPartner vs. Platzer Fastigheter Holding | FastPartner vs. Nyfosa AB | FastPartner vs. Fabege 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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