Correlation Between HEBA Fastighets and Catena AB
Can any of the company-specific risk be diversified away by investing in both HEBA Fastighets and Catena 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 HEBA Fastighets and Catena AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HEBA Fastighets AB and Catena AB, you can compare the effects of market volatilities on HEBA Fastighets and Catena 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 HEBA Fastighets with a short position of Catena AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of HEBA Fastighets and Catena AB.
Diversification Opportunities for HEBA Fastighets and Catena AB
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between HEBA and Catena is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding HEBA Fastighets AB and Catena AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catena AB and HEBA Fastighets 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 HEBA Fastighets AB are associated (or correlated) with Catena AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catena AB has no effect on the direction of HEBA Fastighets i.e., HEBA Fastighets and Catena AB go up and down completely randomly.
Pair Corralation between HEBA Fastighets and Catena AB
Assuming the 90 days trading horizon HEBA Fastighets AB is expected to generate 1.18 times more return on investment than Catena AB. However, HEBA Fastighets is 1.18 times more volatile than Catena AB. It trades about 0.0 of its potential returns per unit of risk. Catena AB is currently generating about -0.14 per unit of risk. If you would invest 3,280 in HEBA Fastighets AB on September 13, 2024 and sell it today you would lose (5.00) from holding HEBA Fastighets AB or give up 0.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HEBA Fastighets AB vs. Catena AB
Performance |
| Timeline |
| HEBA Fastighets AB |
| Catena AB |
HEBA Fastighets and Catena AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HEBA Fastighets and Catena AB
The main advantage of trading using opposite HEBA Fastighets and Catena AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HEBA Fastighets position performs unexpectedly, Catena 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 Catena AB will offset losses from the drop in Catena AB's long position.| HEBA Fastighets vs. Atrium Ljungberg AB | HEBA Fastighets vs. Dios Fastigheter AB | HEBA Fastighets vs. Wihlborgs Fastigheter AB | HEBA Fastighets vs. Hufvudstaden AB |
| Catena AB vs. Fastighets AB Balder | Catena AB vs. Fabege AB | Catena AB vs. Wihlborgs Fastigheter AB | Catena AB 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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