Correlation Between Kalleback Property and Wihlborgs Fastigheter
Can any of the company-specific risk be diversified away by investing in both Kalleback Property and Wihlborgs 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 Kalleback Property and Wihlborgs Fastigheter 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 Wihlborgs Fastigheter AB, you can compare the effects of market volatilities on Kalleback Property and Wihlborgs 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 Kalleback Property with a short position of Wihlborgs Fastigheter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kalleback Property and Wihlborgs Fastigheter.
Diversification Opportunities for Kalleback Property and Wihlborgs Fastigheter
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kalleback and Wihlborgs is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Kalleback Property Invest and Wihlborgs Fastigheter AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wihlborgs Fastigheter 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 Wihlborgs Fastigheter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wihlborgs Fastigheter has no effect on the direction of Kalleback Property i.e., Kalleback Property and Wihlborgs Fastigheter go up and down completely randomly.
Pair Corralation between Kalleback Property and Wihlborgs Fastigheter
Assuming the 90 days trading horizon Kalleback Property Invest is expected to generate 0.29 times more return on investment than Wihlborgs Fastigheter. However, Kalleback Property Invest is 3.43 times less risky than Wihlborgs Fastigheter. It trades about -0.11 of its potential returns per unit of risk. Wihlborgs Fastigheter AB is currently generating about -0.18 per unit of risk. If you would invest 17,950 in Kalleback Property Invest on August 27, 2024 and sell it today you would lose (200.00) from holding Kalleback Property Invest or give up 1.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kalleback Property Invest vs. Wihlborgs Fastigheter AB
Performance |
| Timeline |
| Kalleback Property Invest |
| Wihlborgs Fastigheter |
Kalleback Property and Wihlborgs Fastigheter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kalleback Property and Wihlborgs Fastigheter
The main advantage of trading using opposite Kalleback Property and Wihlborgs Fastigheter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kalleback Property position performs unexpectedly, Wihlborgs 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 Wihlborgs Fastigheter will offset losses from the drop in Wihlborgs Fastigheter's long position.| Kalleback Property vs. NP3 Fastigheter AB | Kalleback Property vs. Hufvudstaden AB | Kalleback Property vs. Cibus Nordic Real |
| Wihlborgs Fastigheter vs. Fastighets AB Balder | Wihlborgs Fastigheter vs. Fabege AB | Wihlborgs Fastigheter 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |