Correlation Between Scandinavian Investment and Fast Ejendom
Can any of the company-specific risk be diversified away by investing in both Scandinavian Investment 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 Scandinavian Investment and Fast Ejendom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scandinavian Investment Group and Fast Ejendom, you can compare the effects of market volatilities on Scandinavian Investment 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 Scandinavian Investment with a short position of Fast Ejendom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scandinavian Investment and Fast Ejendom.
Diversification Opportunities for Scandinavian Investment and Fast Ejendom
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Scandinavian and Fast is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Scandinavian Investment Group and Fast Ejendom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fast Ejendom and Scandinavian Investment 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 Scandinavian Investment Group 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 Scandinavian Investment i.e., Scandinavian Investment and Fast Ejendom go up and down completely randomly.
Pair Corralation between Scandinavian Investment and Fast Ejendom
Assuming the 90 days trading horizon Scandinavian Investment Group is expected to generate 1.12 times more return on investment than Fast Ejendom. However, Scandinavian Investment is 1.12 times more volatile than Fast Ejendom. It trades about 0.02 of its potential returns per unit of risk. Fast Ejendom is currently generating about 0.01 per unit of risk. If you would invest 308.00 in Scandinavian Investment Group on August 25, 2024 and sell it today you would earn a total of 20.00 from holding Scandinavian Investment Group or generate 6.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scandinavian Investment Group vs. Fast Ejendom
Performance |
| Timeline |
| Scandinavian Investment |
| Fast Ejendom |
Scandinavian Investment and Fast Ejendom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scandinavian Investment and Fast Ejendom
The main advantage of trading using opposite Scandinavian Investment and Fast Ejendom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scandinavian Investment 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.| Scandinavian Investment vs. North Media AS | Scandinavian Investment vs. Rovsing AS | Scandinavian Investment vs. Alm Brand | Scandinavian Investment vs. SKAKO AS |
| Fast Ejendom vs. Prime Office AS | Fast Ejendom vs. First Farms AS | Fast Ejendom vs. Jeudan | Fast Ejendom vs. Gabriel Holding |
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.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |