Correlation Between Nyfosa AB and NP3 Fastigheter
Can any of the company-specific risk be diversified away by investing in both Nyfosa AB and NP3 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 Nyfosa AB and NP3 Fastigheter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nyfosa AB and NP3 Fastigheter AB, you can compare the effects of market volatilities on Nyfosa AB and NP3 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 Nyfosa AB with a short position of NP3 Fastigheter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nyfosa AB and NP3 Fastigheter.
Diversification Opportunities for Nyfosa AB and NP3 Fastigheter
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nyfosa and NP3 is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Nyfosa AB and NP3 Fastigheter AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NP3 Fastigheter AB and Nyfosa AB 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 Nyfosa AB are associated (or correlated) with NP3 Fastigheter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NP3 Fastigheter AB has no effect on the direction of Nyfosa AB i.e., Nyfosa AB and NP3 Fastigheter go up and down completely randomly.
Pair Corralation between Nyfosa AB and NP3 Fastigheter
Assuming the 90 days trading horizon Nyfosa AB is expected to generate 1.33 times less return on investment than NP3 Fastigheter. In addition to that, Nyfosa AB is 1.09 times more volatile than NP3 Fastigheter AB. It trades about 0.05 of its total potential returns per unit of risk. NP3 Fastigheter AB is currently generating about 0.08 per unit of volatility. If you would invest 19,217 in NP3 Fastigheter AB on November 3, 2024 and sell it today you would earn a total of 7,133 from holding NP3 Fastigheter AB or generate 37.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
Nyfosa AB vs. NP3 Fastigheter AB
Performance |
| Timeline |
| Nyfosa AB |
| NP3 Fastigheter AB |
Nyfosa AB and NP3 Fastigheter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nyfosa AB and NP3 Fastigheter
The main advantage of trading using opposite Nyfosa AB and NP3 Fastigheter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nyfosa AB position performs unexpectedly, NP3 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 NP3 Fastigheter will offset losses from the drop in NP3 Fastigheter's long position.| Nyfosa AB vs. Fastighets AB Balder | Nyfosa AB vs. Fabege AB | Nyfosa AB vs. AB Sagax | Nyfosa AB vs. Wihlborgs Fastigheter AB |
| NP3 Fastigheter vs. Platzer Fastigheter Holding | NP3 Fastigheter vs. Catena AB | NP3 Fastigheter vs. AB Sagax | NP3 Fastigheter vs. Nyfosa 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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