Correlation Between Platzer Fastigheter and NP3 Fastigheter
Can any of the company-specific risk be diversified away by investing in both Platzer Fastigheter 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 Platzer Fastigheter and NP3 Fastigheter 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 NP3 Fastigheter AB, you can compare the effects of market volatilities on Platzer Fastigheter 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 Platzer Fastigheter with a short position of NP3 Fastigheter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platzer Fastigheter and NP3 Fastigheter.
Diversification Opportunities for Platzer Fastigheter and NP3 Fastigheter
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Platzer and NP3 is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Platzer Fastigheter Holding 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 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 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 Platzer Fastigheter i.e., Platzer Fastigheter and NP3 Fastigheter go up and down completely randomly.
Pair Corralation between Platzer Fastigheter and NP3 Fastigheter
Assuming the 90 days trading horizon Platzer Fastigheter is expected to generate 3.34 times less return on investment than NP3 Fastigheter. But when comparing it to its historical volatility, Platzer Fastigheter Holding is 1.03 times less risky than NP3 Fastigheter. It trades about 0.02 of its potential returns per unit of risk. NP3 Fastigheter AB is currently generating about 0.08 of returns per unit of risk over similar time horizon. 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 | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Platzer Fastigheter Holding vs. NP3 Fastigheter AB
Performance |
| Timeline |
| Platzer Fastigheter |
| NP3 Fastigheter AB |
Platzer Fastigheter and NP3 Fastigheter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platzer Fastigheter and NP3 Fastigheter
The main advantage of trading using opposite Platzer Fastigheter and NP3 Fastigheter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platzer Fastigheter 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.| Platzer Fastigheter vs. Arion banki hf | Platzer Fastigheter vs. High Coast Distillery | Platzer Fastigheter vs. Lundin Mining | Platzer Fastigheter vs. Media and Games |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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