Correlation Between SDG Invest and Fast Ejendom
Can any of the company-specific risk be diversified away by investing in both SDG Invest and Fast Ejendom 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 SDG Invest and Fast Ejendom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SDG Invest Globale and Fast Ejendom, you can compare the effects of market volatilities on SDG Invest and Fast Ejendom 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 SDG Invest with a short position of Fast Ejendom. Check out your portfolio center. Please also check ongoing floating volatility patterns of SDG Invest and Fast Ejendom.
Diversification Opportunities for SDG Invest and Fast Ejendom
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SDG and Fast is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding SDG Invest Globale and Fast Ejendom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fast Ejendom and SDG Invest 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 SDG Invest Globale are associated (or correlated) with Fast Ejendom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fast Ejendom has no effect on the direction of SDG Invest i.e., SDG Invest and Fast Ejendom go up and down completely randomly.
Pair Corralation between SDG Invest and Fast Ejendom
Assuming the 90 days trading horizon SDG Invest Globale is expected to generate 0.56 times more return on investment than Fast Ejendom. However, SDG Invest Globale is 1.79 times less risky than Fast Ejendom. It trades about 0.04 of its potential returns per unit of risk. Fast Ejendom is currently generating about -0.01 per unit of risk. If you would invest 19,870 in SDG Invest Globale on October 25, 2024 and sell it today you would earn a total of 330.00 from holding SDG Invest Globale or generate 1.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.67% |
| Values | Daily Returns |
SDG Invest Globale vs. Fast Ejendom
Performance |
| Timeline |
| SDG Invest Globale |
| Fast Ejendom |
SDG Invest and Fast Ejendom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SDG Invest and Fast Ejendom
The main advantage of trading using opposite SDG Invest and Fast Ejendom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SDG Invest position performs unexpectedly, Fast Ejendom 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 Fast Ejendom will offset losses from the drop in Fast Ejendom's long position.| SDG Invest vs. Lollands Bank | SDG Invest vs. Fynske Bank AS | SDG Invest vs. Formuepleje Mix Medium | SDG Invest vs. PARKEN Sport Entertainment |
| Fast Ejendom vs. SKAKO AS | Fast Ejendom vs. Agat Ejendomme AS | Fast Ejendom vs. Prime Office AS | Fast Ejendom vs. Cemat AS |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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