Correlation Between SBB-D and K Fast
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By analyzing existing cross correlation between Samhaellsbyggnadsbolaget i Norden and K Fast Holding AB, you can compare the effects of market volatilities on SBB-D 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 SBB-D with a short position of K Fast. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBB-D and K Fast.
Diversification Opportunities for SBB-D and K Fast
Almost no diversification
The 3 months correlation between SBB-D and KFAST-B is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Samhaellsbyggnadsbolaget i Nor 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 SBB-D 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 Samhaellsbyggnadsbolaget i Norden 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 SBB-D i.e., SBB-D and K Fast go up and down completely randomly.
Pair Corralation between SBB-D and K Fast
Assuming the 90 days trading horizon Samhaellsbyggnadsbolaget i Norden is expected to under-perform the K Fast. In addition to that, SBB-D is 1.87 times more volatile than K Fast Holding AB. It trades about -0.01 of its total potential returns per unit of risk. K Fast Holding AB is currently generating about 0.0 per unit of volatility. If you would invest 2,590 in K Fast Holding AB on September 3, 2024 and sell it today you would lose (620.00) from holding K Fast Holding AB or give up 23.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samhaellsbyggnadsbolaget i Nor vs. K Fast Holding AB
Performance |
| Timeline |
| Samhaellsbyggnadsbol |
| K Fast Holding |
SBB-D and K Fast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBB-D and K Fast
The main advantage of trading using opposite SBB-D and K Fast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBB-D 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.The idea behind Samhaellsbyggnadsbolaget i Norden and K Fast Holding AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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