Correlation Between AB Sagax and Corem Property
Can any of the company-specific risk be diversified away by investing in both AB Sagax and Corem Property 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 AB Sagax and Corem Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AB Sagax and Corem Property Group, you can compare the effects of market volatilities on AB Sagax and Corem Property 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 Corem Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of AB Sagax and Corem Property.
Diversification Opportunities for AB Sagax and Corem Property
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SAGA-B and Corem is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding AB Sagax and Corem Property Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corem Property Group 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 Corem Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corem Property Group has no effect on the direction of AB Sagax i.e., AB Sagax and Corem Property go up and down completely randomly.
Pair Corralation between AB Sagax and Corem Property
Assuming the 90 days trading horizon AB Sagax is expected to generate 0.55 times more return on investment than Corem Property. However, AB Sagax is 1.81 times less risky than Corem Property. It trades about 0.0 of its potential returns per unit of risk. Corem Property Group is currently generating about -0.01 per unit of risk. If you would invest 26,415 in AB Sagax on November 5, 2024 and sell it today you would lose (1,995) from holding AB Sagax or give up 7.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AB Sagax vs. Corem Property Group
Performance |
| Timeline |
| AB Sagax |
| Corem Property Group |
AB Sagax and Corem Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AB Sagax and Corem Property
The main advantage of trading using opposite AB Sagax and Corem Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AB Sagax position performs unexpectedly, Corem Property 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 Corem Property will offset losses from the drop in Corem Property's long position.| AB Sagax vs. Fastighets AB Balder | AB Sagax vs. Fabege AB | AB Sagax vs. Wihlborgs Fastigheter AB | AB Sagax vs. Castellum AB |
| Corem Property vs. Upsales Technology AB | Corem Property vs. White Pearl Technology | Corem Property vs. Lime Technologies AB | Corem Property vs. Spago Nanomedical 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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