Correlation Between NP3 Fastigheter and AB Sagax
Can any of the company-specific risk be diversified away by investing in both NP3 Fastigheter and AB Sagax 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 NP3 Fastigheter and AB Sagax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NP3 Fastigheter AB and AB Sagax, you can compare the effects of market volatilities on NP3 Fastigheter and AB Sagax 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 NP3 Fastigheter with a short position of AB Sagax. Check out your portfolio center. Please also check ongoing floating volatility patterns of NP3 Fastigheter and AB Sagax.
Diversification Opportunities for NP3 Fastigheter and AB Sagax
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NP3 and SAGA-A is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding NP3 Fastigheter AB and AB Sagax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AB Sagax and NP3 Fastigheter 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 NP3 Fastigheter AB are associated (or correlated) with AB Sagax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AB Sagax has no effect on the direction of NP3 Fastigheter i.e., NP3 Fastigheter and AB Sagax go up and down completely randomly.
Pair Corralation between NP3 Fastigheter and AB Sagax
Assuming the 90 days trading horizon NP3 Fastigheter is expected to generate 3.26 times less return on investment than AB Sagax. But when comparing it to its historical volatility, NP3 Fastigheter AB is 1.3 times less risky than AB Sagax. It trades about 0.05 of its potential returns per unit of risk. AB Sagax is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 22,600 in AB Sagax on October 26, 2024 and sell it today you would earn a total of 1,200 from holding AB Sagax or generate 5.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NP3 Fastigheter AB vs. AB Sagax
Performance |
| Timeline |
| NP3 Fastigheter AB |
| AB Sagax |
NP3 Fastigheter and AB Sagax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NP3 Fastigheter and AB Sagax
The main advantage of trading using opposite NP3 Fastigheter and AB Sagax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NP3 Fastigheter position performs unexpectedly, AB Sagax 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 AB Sagax will offset losses from the drop in AB Sagax's long position.| NP3 Fastigheter vs. Platzer Fastigheter Holding | NP3 Fastigheter vs. Catena AB | NP3 Fastigheter vs. AB Sagax | NP3 Fastigheter vs. Nyfosa AB |
| AB Sagax vs. SolTech Energy Sweden | AB Sagax vs. White Pearl Technology | AB Sagax vs. USWE Sports AB | AB Sagax vs. Viva Wine 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |