Correlation Between IAR Systems and Corem Property
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By analyzing existing cross correlation between IAR Systems Group and Corem Property Group, you can compare the effects of market volatilities on IAR Systems and Corem Property 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 IAR Systems with a short position of Corem Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of IAR Systems and Corem Property.
Diversification Opportunities for IAR Systems and Corem Property
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IAR and Corem is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding IAR Systems Group and Corem Property Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corem Property Group and IAR Systems 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 IAR Systems Group are associated (or correlated) with Corem Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corem Property Group has no effect on the direction of IAR Systems i.e., IAR Systems and Corem Property go up and down completely randomly.
Pair Corralation between IAR Systems and Corem Property
Assuming the 90 days trading horizon IAR Systems Group is expected to generate 2.09 times more return on investment than Corem Property. However, IAR Systems is 2.09 times more volatile than Corem Property Group. It trades about 0.08 of its potential returns per unit of risk. Corem Property Group is currently generating about 0.12 per unit of risk. If you would invest 7,804 in IAR Systems Group on September 12, 2024 and sell it today you would earn a total of 6,746 from holding IAR Systems Group or generate 86.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IAR Systems Group vs. Corem Property Group
Performance |
| Timeline |
| IAR Systems Group |
| Corem Property Group |
IAR Systems and Corem Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IAR Systems and Corem Property
The main advantage of trading using opposite IAR Systems and Corem Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IAR Systems position performs unexpectedly, Corem Property 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 Corem Property will offset losses from the drop in Corem Property's long position.| IAR Systems vs. CellaVision AB | IAR Systems vs. HMS Networks AB | IAR Systems vs. Enea AB | IAR Systems vs. Know IT AB |
| Corem Property vs. ALM Equity AB | Corem Property vs. Fastighets AB Balder | Corem Property vs. KABE Group AB | Corem Property vs. IAR Systems Group |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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