Correlation Between Platzer Fastigheter and Stendrren Fastigheter
Can any of the company-specific risk be diversified away by investing in both Platzer Fastigheter and Stendrren 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 Stendrren 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 Stendrren Fastigheter AB, you can compare the effects of market volatilities on Platzer Fastigheter and Stendrren 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 Stendrren Fastigheter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platzer Fastigheter and Stendrren Fastigheter.
Diversification Opportunities for Platzer Fastigheter and Stendrren Fastigheter
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Platzer and Stendrren is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Platzer Fastigheter Holding and Stendrren Fastigheter AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stendrren Fastigheter 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 Stendrren Fastigheter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stendrren Fastigheter has no effect on the direction of Platzer Fastigheter i.e., Platzer Fastigheter and Stendrren Fastigheter go up and down completely randomly.
Pair Corralation between Platzer Fastigheter and Stendrren Fastigheter
Assuming the 90 days trading horizon Platzer Fastigheter Holding is expected to under-perform the Stendrren Fastigheter. But the stock apears to be less risky and, when comparing its historical volatility, Platzer Fastigheter Holding is 1.22 times less risky than Stendrren Fastigheter. The stock trades about -0.05 of its potential returns per unit of risk. The Stendrren Fastigheter AB is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 20,450 in Stendrren Fastigheter AB on September 4, 2024 and sell it today you would earn a total of 250.00 from holding Stendrren Fastigheter AB or generate 1.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Platzer Fastigheter Holding vs. Stendrren Fastigheter AB
Performance |
| Timeline |
| Platzer Fastigheter |
| Stendrren Fastigheter |
Platzer Fastigheter and Stendrren Fastigheter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platzer Fastigheter and Stendrren Fastigheter
The main advantage of trading using opposite Platzer Fastigheter and Stendrren Fastigheter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platzer Fastigheter position performs unexpectedly, Stendrren 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 Stendrren Fastigheter will offset losses from the drop in Stendrren Fastigheter's long position.| Platzer Fastigheter vs. Cibus Nordic Real | Platzer Fastigheter vs. ALM Equity AB | Platzer Fastigheter vs. Castellum AB |
| Stendrren Fastigheter vs. AB Sagax | Stendrren Fastigheter vs. Catena AB | Stendrren Fastigheter vs. Platzer Fastigheter Holding | Stendrren Fastigheter vs. Dios Fastigheter 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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