Correlation Between GuocoLand and Dis Fastigheter
Can any of the company-specific risk be diversified away by investing in both GuocoLand and Dis Fastigheter 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 GuocoLand and Dis Fastigheter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GuocoLand Limited and Dis Fastigheter AB, you can compare the effects of market volatilities on GuocoLand and Dis Fastigheter 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 GuocoLand with a short position of Dis Fastigheter. Check out your portfolio center. Please also check ongoing floating volatility patterns of GuocoLand and Dis Fastigheter.
Diversification Opportunities for GuocoLand and Dis Fastigheter
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GuocoLand and Dis is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding GuocoLand Limited and Dis Fastigheter AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dis Fastigheter AB and GuocoLand 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 GuocoLand Limited are associated (or correlated) with Dis Fastigheter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dis Fastigheter AB has no effect on the direction of GuocoLand i.e., GuocoLand and Dis Fastigheter go up and down completely randomly.
Pair Corralation between GuocoLand and Dis Fastigheter
Assuming the 90 days trading horizon GuocoLand Limited is expected to generate 0.6 times more return on investment than Dis Fastigheter. However, GuocoLand Limited is 1.68 times less risky than Dis Fastigheter. It trades about 0.12 of its potential returns per unit of risk. Dis Fastigheter AB is currently generating about -0.15 per unit of risk. If you would invest 103.00 in GuocoLand Limited on August 25, 2024 and sell it today you would earn a total of 3.00 from holding GuocoLand Limited or generate 2.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
GuocoLand Limited vs. Dis Fastigheter AB
Performance |
| Timeline |
| GuocoLand Limited |
| Dis Fastigheter AB |
GuocoLand and Dis Fastigheter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GuocoLand and Dis Fastigheter
The main advantage of trading using opposite GuocoLand and Dis Fastigheter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GuocoLand position performs unexpectedly, Dis Fastigheter 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 Dis Fastigheter will offset losses from the drop in Dis Fastigheter's long position.| GuocoLand vs. Dis Fastigheter AB | GuocoLand vs. Superior Plus Corp | GuocoLand vs. NMI Holdings | GuocoLand vs. Origin Agritech |
| Dis Fastigheter vs. Superior Plus Corp | Dis Fastigheter vs. NMI Holdings | Dis Fastigheter vs. Origin Agritech | Dis Fastigheter vs. SIVERS SEMICONDUCTORS 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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