Correlation Between Heimstaden and Nepa AB
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By analyzing existing cross correlation between Heimstaden AB Pfd and Nepa AB, you can compare the effects of market volatilities on Heimstaden and Nepa 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 Heimstaden with a short position of Nepa AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heimstaden and Nepa AB.
Diversification Opportunities for Heimstaden and Nepa AB
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Heimstaden and Nepa is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Heimstaden AB Pfd and Nepa AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nepa AB and Heimstaden 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 Heimstaden AB Pfd are associated (or correlated) with Nepa AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nepa AB has no effect on the direction of Heimstaden i.e., Heimstaden and Nepa AB go up and down completely randomly.
Pair Corralation between Heimstaden and Nepa AB
Assuming the 90 days trading horizon Heimstaden AB Pfd is expected to generate 1.04 times more return on investment than Nepa AB. However, Heimstaden is 1.04 times more volatile than Nepa AB. It trades about 0.03 of its potential returns per unit of risk. Nepa AB is currently generating about -0.03 per unit of risk. If you would invest 1,303 in Heimstaden AB Pfd on August 25, 2024 and sell it today you would earn a total of 101.00 from holding Heimstaden AB Pfd or generate 7.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heimstaden AB Pfd vs. Nepa AB
Performance |
| Timeline |
| Heimstaden AB Pfd |
| Nepa AB |
Heimstaden and Nepa AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heimstaden and Nepa AB
The main advantage of trading using opposite Heimstaden and Nepa AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heimstaden position performs unexpectedly, Nepa 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 Nepa AB will offset losses from the drop in Nepa AB's long position.| Heimstaden vs. Fastighets AB Balder | Heimstaden vs. Nyfosa AB | Heimstaden vs. Dios Fastigheter AB | Heimstaden vs. Corem Property Group |
| Nepa AB vs. MAG Interactive AB | Nepa AB vs. Kambi Group PLC | Nepa AB vs. Hexatronic Group AB | Nepa AB vs. Integrum AB Series |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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