Correlation Between OPEN HOUSE and Dis Fastigheter
Can any of the company-specific risk be diversified away by investing in both OPEN HOUSE and Dis 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 OPEN HOUSE and Dis Fastigheter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OPEN HOUSE GROUP and Dis Fastigheter AB, you can compare the effects of market volatilities on OPEN HOUSE and Dis 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 OPEN HOUSE with a short position of Dis Fastigheter. Check out your portfolio center. Please also check ongoing floating volatility patterns of OPEN HOUSE and Dis Fastigheter.
Diversification Opportunities for OPEN HOUSE and Dis Fastigheter
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between OPEN and Dis is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding OPEN HOUSE GROUP and Dis Fastigheter AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dis Fastigheter AB and OPEN HOUSE 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 OPEN HOUSE GROUP are associated (or correlated) with Dis Fastigheter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dis Fastigheter AB has no effect on the direction of OPEN HOUSE i.e., OPEN HOUSE and Dis Fastigheter go up and down completely randomly.
Pair Corralation between OPEN HOUSE and Dis Fastigheter
Assuming the 90 days horizon OPEN HOUSE GROUP is expected to generate 0.79 times more return on investment than Dis Fastigheter. However, OPEN HOUSE GROUP is 1.27 times less risky than Dis Fastigheter. It trades about 0.22 of its potential returns per unit of risk. Dis Fastigheter AB is currently generating about -0.12 per unit of risk. If you would invest 3,120 in OPEN HOUSE GROUP on November 27, 2024 and sell it today you would earn a total of 240.00 from holding OPEN HOUSE GROUP or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
OPEN HOUSE GROUP vs. Dis Fastigheter AB
Performance |
| Timeline |
| OPEN HOUSE GROUP |
| Dis Fastigheter AB |
OPEN HOUSE and Dis Fastigheter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OPEN HOUSE and Dis Fastigheter
The main advantage of trading using opposite OPEN HOUSE and Dis Fastigheter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OPEN HOUSE position performs unexpectedly, Dis 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 Dis Fastigheter will offset losses from the drop in Dis Fastigheter's long position.| OPEN HOUSE vs. Singapore Telecommunications Limited | OPEN HOUSE vs. TELECOM ITALRISP ADR10 | OPEN HOUSE vs. COSTCO WHOLESALE CDR | OPEN HOUSE vs. Computershare Limited |
| Dis Fastigheter vs. De Grey Mining | Dis Fastigheter vs. CNVISION MEDIA | Dis Fastigheter vs. MCEWEN MINING INC | Dis Fastigheter vs. Monument Mining Limited |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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