Correlation Between Platzer Fastigheter and Viva Wine
Can any of the company-specific risk be diversified away by investing in both Platzer Fastigheter and Viva Wine 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 Viva Wine 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 Viva Wine Group, you can compare the effects of market volatilities on Platzer Fastigheter and Viva Wine 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 Viva Wine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platzer Fastigheter and Viva Wine.
Diversification Opportunities for Platzer Fastigheter and Viva Wine
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Platzer and Viva is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Platzer Fastigheter Holding and Viva Wine Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viva Wine Group 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 Viva Wine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viva Wine Group has no effect on the direction of Platzer Fastigheter i.e., Platzer Fastigheter and Viva Wine go up and down completely randomly.
Pair Corralation between Platzer Fastigheter and Viva Wine
Assuming the 90 days trading horizon Platzer Fastigheter Holding is expected to generate 1.1 times more return on investment than Viva Wine. However, Platzer Fastigheter is 1.1 times more volatile than Viva Wine Group. It trades about -0.08 of its potential returns per unit of risk. Viva Wine Group is currently generating about -0.14 per unit of risk. If you would invest 8,950 in Platzer Fastigheter Holding on September 5, 2024 and sell it today you would lose (290.00) from holding Platzer Fastigheter Holding or give up 3.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Platzer Fastigheter Holding vs. Viva Wine Group
Performance |
| Timeline |
| Platzer Fastigheter |
| Viva Wine Group |
Platzer Fastigheter and Viva Wine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platzer Fastigheter and Viva Wine
The main advantage of trading using opposite Platzer Fastigheter and Viva Wine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platzer Fastigheter position performs unexpectedly, Viva Wine 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 Viva Wine will offset losses from the drop in Viva Wine's long position.| Platzer Fastigheter vs. Viva Wine Group | Platzer Fastigheter vs. AVTECH Sweden AB | Platzer Fastigheter vs. Maven Wireless Sweden | Platzer Fastigheter vs. Vitec Software Group |
| Viva Wine vs. Cint Group AB | Viva Wine vs. Nordic Waterproofing Holding | Viva Wine vs. Synsam AB | Viva Wine vs. Inwido 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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