Correlation Between Platzer Fastigheter and Fabege AB
Can any of the company-specific risk be diversified away by investing in both Platzer Fastigheter and Fabege AB 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 Platzer Fastigheter and Fabege AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Platzer Fastigheter Holding and Fabege AB, you can compare the effects of market volatilities on Platzer Fastigheter and Fabege AB 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 Platzer Fastigheter with a short position of Fabege AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platzer Fastigheter and Fabege AB.
Diversification Opportunities for Platzer Fastigheter and Fabege AB
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Platzer and Fabege is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Platzer Fastigheter Holding and Fabege AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fabege AB and Platzer 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 Platzer Fastigheter Holding are associated (or correlated) with Fabege AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fabege AB has no effect on the direction of Platzer Fastigheter i.e., Platzer Fastigheter and Fabege AB go up and down completely randomly.
Pair Corralation between Platzer Fastigheter and Fabege AB
Assuming the 90 days trading horizon Platzer Fastigheter Holding is expected to generate 1.07 times more return on investment than Fabege AB. However, Platzer Fastigheter is 1.07 times more volatile than Fabege AB. It trades about 0.04 of its potential returns per unit of risk. Fabege AB is currently generating about 0.02 per unit of risk. If you would invest 6,736 in Platzer Fastigheter Holding on September 12, 2024 and sell it today you would earn a total of 1,764 from holding Platzer Fastigheter Holding or generate 26.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Platzer Fastigheter Holding vs. Fabege AB
Performance |
| Timeline |
| Platzer Fastigheter |
| Fabege AB |
Platzer Fastigheter and Fabege AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platzer Fastigheter and Fabege AB
The main advantage of trading using opposite Platzer Fastigheter and Fabege AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platzer Fastigheter position performs unexpectedly, Fabege AB 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 Fabege AB will offset losses from the drop in Fabege AB's long position.| Platzer Fastigheter vs. Arion banki hf | Platzer Fastigheter vs. eEducation Albert AB | Platzer Fastigheter vs. USWE Sports AB | Platzer Fastigheter vs. MTI Investment SE |
| Fabege AB vs. Platzer Fastigheter Holding | Fabege AB vs. Catena AB | Fabege AB vs. AB Sagax | Fabege AB 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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