Correlation Between Logistea and Fastighets
Can any of the company-specific risk be diversified away by investing in both Logistea and Fastighets 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 Logistea and Fastighets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Logistea AB Series and Fastighets AB Balder, you can compare the effects of market volatilities on Logistea and Fastighets 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 Logistea with a short position of Fastighets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logistea and Fastighets.
Diversification Opportunities for Logistea and Fastighets
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Logistea and Fastighets is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Logistea AB Series and Fastighets AB Balder in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fastighets AB Balder and Logistea 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 Logistea AB Series are associated (or correlated) with Fastighets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fastighets AB Balder has no effect on the direction of Logistea i.e., Logistea and Fastighets go up and down completely randomly.
Pair Corralation between Logistea and Fastighets
Assuming the 90 days trading horizon Logistea is expected to generate 1.6 times less return on investment than Fastighets. In addition to that, Logistea is 1.28 times more volatile than Fastighets AB Balder. It trades about 0.03 of its total potential returns per unit of risk. Fastighets AB Balder is currently generating about 0.07 per unit of volatility. If you would invest 7,256 in Fastighets AB Balder on September 1, 2024 and sell it today you would earn a total of 1,136 from holding Fastighets AB Balder or generate 15.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.22% |
| Values | Daily Returns |
Logistea AB Series vs. Fastighets AB Balder
Performance |
| Timeline |
| Logistea AB Series |
| Fastighets AB Balder |
Logistea and Fastighets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Logistea and Fastighets
The main advantage of trading using opposite Logistea and Fastighets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logistea position performs unexpectedly, Fastighets 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 Fastighets will offset losses from the drop in Fastighets' long position.| Logistea vs. Logistea A | Logistea vs. KlaraBo Sverige AB | Logistea vs. Hexatronic Group AB | Logistea vs. K Fast Holding AB |
| Fastighets vs. Castellum AB | Fastighets vs. Fabege AB | Fastighets vs. AB Sagax | Fastighets vs. Wallenstam 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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