Correlation Between Kalleback Property and Cibus Nordic
Can any of the company-specific risk be diversified away by investing in both Kalleback Property and Cibus Nordic 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 Kalleback Property and Cibus Nordic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kalleback Property Invest and Cibus Nordic Real, you can compare the effects of market volatilities on Kalleback Property and Cibus Nordic 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 Kalleback Property with a short position of Cibus Nordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kalleback Property and Cibus Nordic.
Diversification Opportunities for Kalleback Property and Cibus Nordic
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kalleback and Cibus is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Kalleback Property Invest and Cibus Nordic Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cibus Nordic Real and Kalleback Property 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 Kalleback Property Invest are associated (or correlated) with Cibus Nordic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cibus Nordic Real has no effect on the direction of Kalleback Property i.e., Kalleback Property and Cibus Nordic go up and down completely randomly.
Pair Corralation between Kalleback Property and Cibus Nordic
Assuming the 90 days trading horizon Kalleback Property is expected to generate 1.88 times less return on investment than Cibus Nordic. But when comparing it to its historical volatility, Kalleback Property Invest is 2.06 times less risky than Cibus Nordic. It trades about 0.09 of its potential returns per unit of risk. Cibus Nordic Real is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 13,171 in Cibus Nordic Real on September 2, 2024 and sell it today you would earn a total of 4,289 from holding Cibus Nordic Real or generate 32.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kalleback Property Invest vs. Cibus Nordic Real
Performance |
| Timeline |
| Kalleback Property Invest |
| Cibus Nordic Real |
Kalleback Property and Cibus Nordic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kalleback Property and Cibus Nordic
The main advantage of trading using opposite Kalleback Property and Cibus Nordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kalleback Property position performs unexpectedly, Cibus Nordic 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 Cibus Nordic will offset losses from the drop in Cibus Nordic's long position.| Kalleback Property vs. Fastighets AB Balder | Kalleback Property vs. Fabege AB | Kalleback Property vs. Wihlborgs Fastigheter AB | Kalleback Property vs. Castellum AB |
| Cibus Nordic vs. Fastighets AB Balder | Cibus Nordic vs. Fabege AB | Cibus Nordic vs. Wihlborgs Fastigheter AB | Cibus Nordic vs. Castellum 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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