Correlation Between AB Sagax and Stendrren Fastigheter
Can any of the company-specific risk be diversified away by investing in both AB Sagax 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 AB Sagax and Stendrren Fastigheter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AB Sagax and Stendrren Fastigheter AB, you can compare the effects of market volatilities on AB Sagax 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 AB Sagax with a short position of Stendrren Fastigheter. Check out your portfolio center. Please also check ongoing floating volatility patterns of AB Sagax and Stendrren Fastigheter.
Diversification Opportunities for AB Sagax and Stendrren Fastigheter
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SAGA-B and Stendrren is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding AB Sagax and Stendrren Fastigheter AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stendrren Fastigheter 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 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 AB Sagax i.e., AB Sagax and Stendrren Fastigheter go up and down completely randomly.
Pair Corralation between AB Sagax and Stendrren Fastigheter
Assuming the 90 days trading horizon AB Sagax is expected to generate 1.29 times less return on investment than Stendrren Fastigheter. But when comparing it to its historical volatility, AB Sagax is 1.08 times less risky than Stendrren Fastigheter. It trades about 0.01 of its potential returns per unit of risk. Stendrren Fastigheter AB is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 21,500 in Stendrren Fastigheter AB on September 4, 2024 and sell it today you would lose (800.00) from holding Stendrren Fastigheter AB or give up 3.72% 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. Stendrren Fastigheter AB
Performance |
| Timeline |
| AB Sagax |
| Stendrren Fastigheter |
AB Sagax and Stendrren Fastigheter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AB Sagax and Stendrren Fastigheter
The main advantage of trading using opposite AB Sagax and Stendrren Fastigheter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AB Sagax 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.| AB Sagax vs. Fastighets AB Balder | AB Sagax vs. Fabege AB | AB Sagax vs. Wihlborgs Fastigheter AB | AB Sagax 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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