Correlation Between AB Sagax and Akelius Residential
Can any of the company-specific risk be diversified away by investing in both AB Sagax and Akelius Residential 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 Akelius Residential into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AB Sagax and Akelius Residential Property, you can compare the effects of market volatilities on AB Sagax and Akelius Residential 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 Akelius Residential. Check out your portfolio center. Please also check ongoing floating volatility patterns of AB Sagax and Akelius Residential.
Diversification Opportunities for AB Sagax and Akelius Residential
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between SAGA-D and Akelius is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding AB Sagax and Akelius Residential Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akelius Residential 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 Akelius Residential. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akelius Residential has no effect on the direction of AB Sagax i.e., AB Sagax and Akelius Residential go up and down completely randomly.
Pair Corralation between AB Sagax and Akelius Residential
Assuming the 90 days trading horizon AB Sagax is expected to generate 47.24 times less return on investment than Akelius Residential. But when comparing it to its historical volatility, AB Sagax is 1.02 times less risky than Akelius Residential. It trades about 0.0 of its potential returns per unit of risk. Akelius Residential Property is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 163.00 in Akelius Residential Property on September 3, 2024 and sell it today you would earn a total of 4.00 from holding Akelius Residential Property or generate 2.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AB Sagax vs. Akelius Residential Property
Performance |
| Timeline |
| AB Sagax |
| Akelius Residential |
AB Sagax and Akelius Residential Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AB Sagax and Akelius Residential
The main advantage of trading using opposite AB Sagax and Akelius Residential positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AB Sagax position performs unexpectedly, Akelius Residential 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 Akelius Residential will offset losses from the drop in Akelius Residential'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 |
| Akelius Residential vs. Cibus Nordic Real | Akelius Residential vs. Samhaellsbyggnadsbolaget i Norden | Akelius Residential vs. ALM Equity AB | Akelius Residential vs. Castellum 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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