Correlation Between AB Sagax and K Fast
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By analyzing existing cross correlation between AB Sagax and K Fast Holding AB, you can compare the effects of market volatilities on AB Sagax and K Fast 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 AB Sagax with a short position of K Fast. Check out your portfolio center. Please also check ongoing floating volatility patterns of AB Sagax and K Fast.
Diversification Opportunities for AB Sagax and K Fast
Almost no diversification
The 3 months correlation between SAGA-A and KFAST-B is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding AB Sagax and K Fast Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on K Fast Holding and AB Sagax 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 AB Sagax are associated (or correlated) with K Fast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of K Fast Holding has no effect on the direction of AB Sagax i.e., AB Sagax and K Fast go up and down completely randomly.
Pair Corralation between AB Sagax and K Fast
Assuming the 90 days trading horizon AB Sagax is expected to under-perform the K Fast. But the stock apears to be less risky and, when comparing its historical volatility, AB Sagax is 1.22 times less risky than K Fast. The stock trades about -0.06 of its potential returns per unit of risk. The K Fast Holding AB is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,115 in K Fast Holding AB on September 3, 2024 and sell it today you would lose (145.00) from holding K Fast Holding AB or give up 6.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AB Sagax vs. K Fast Holding AB
Performance |
| Timeline |
| AB Sagax |
| K Fast Holding |
AB Sagax and K Fast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AB Sagax and K Fast
The main advantage of trading using opposite AB Sagax and K Fast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AB Sagax position performs unexpectedly, K Fast 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 K Fast will offset losses from the drop in K Fast's long position.| AB Sagax vs. Cibus Nordic Real | AB Sagax vs. Samhaellsbyggnadsbolaget i Norden | AB Sagax vs. ALM Equity AB | AB Sagax vs. Castellum AB |
| K Fast vs. Fastighets AB Balder | K Fast vs. Nyfosa AB | K Fast vs. Dios Fastigheter AB | K Fast vs. Corem Property Group |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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