Correlation Between AB Sagax and Fastighets
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By analyzing existing cross correlation between AB Sagax and Fastighets AB Trianon, you can compare the effects of market volatilities on AB Sagax and Fastighets 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 Fastighets. Check out your portfolio center. Please also check ongoing floating volatility patterns of AB Sagax and Fastighets.
Diversification Opportunities for AB Sagax and Fastighets
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SAGA-A and Fastighets is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding AB Sagax and Fastighets AB Trianon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fastighets AB Trianon 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 Fastighets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fastighets AB Trianon has no effect on the direction of AB Sagax i.e., AB Sagax and Fastighets go up and down completely randomly.
Pair Corralation between AB Sagax and Fastighets
Assuming the 90 days trading horizon AB Sagax is expected to under-perform the Fastighets. But the stock apears to be less risky and, when comparing its historical volatility, AB Sagax is 1.21 times less risky than Fastighets. The stock trades about -0.1 of its potential returns per unit of risk. The Fastighets AB Trianon is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,230 in Fastighets AB Trianon on September 1, 2024 and sell it today you would earn a total of 80.00 from holding Fastighets AB Trianon or generate 3.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AB Sagax vs. Fastighets AB Trianon
Performance |
| Timeline |
| AB Sagax |
| Fastighets AB Trianon |
AB Sagax and Fastighets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AB Sagax and Fastighets
The main advantage of trading using opposite AB Sagax and Fastighets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AB Sagax position performs unexpectedly, Fastighets 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 Fastighets will offset losses from the drop in Fastighets' long position.| AB Sagax vs. USWE Sports AB | AB Sagax vs. Nordic Iron Ore | AB Sagax vs. Catena Media plc | AB Sagax vs. Beowulf Mining PLC |
| Fastighets vs. NP3 Fastigheter AB | Fastighets vs. Stendrren Fastigheter AB | Fastighets vs. Platzer Fastigheter Holding | Fastighets vs. Wallenstam 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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