Correlation Between Svolder AB and Dios Fastigheter
Can any of the company-specific risk be diversified away by investing in both Svolder AB and Dios 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 Svolder AB and Dios Fastigheter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Svolder AB and Dios Fastigheter AB, you can compare the effects of market volatilities on Svolder AB and Dios 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 Svolder AB with a short position of Dios Fastigheter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Svolder AB and Dios Fastigheter.
Diversification Opportunities for Svolder AB and Dios Fastigheter
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Svolder and Dios is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Svolder AB and Dios Fastigheter AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dios Fastigheter and Svolder AB 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 Svolder AB are associated (or correlated) with Dios Fastigheter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dios Fastigheter has no effect on the direction of Svolder AB i.e., Svolder AB and Dios Fastigheter go up and down completely randomly.
Pair Corralation between Svolder AB and Dios Fastigheter
Assuming the 90 days trading horizon Svolder AB is expected to under-perform the Dios Fastigheter. But the stock apears to be less risky and, when comparing its historical volatility, Svolder AB is 1.13 times less risky than Dios Fastigheter. The stock trades about -0.01 of its potential returns per unit of risk. The Dios Fastigheter AB is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 6,920 in Dios Fastigheter AB on August 31, 2024 and sell it today you would earn a total of 1,125 from holding Dios Fastigheter AB or generate 16.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Svolder AB vs. Dios Fastigheter AB
Performance |
| Timeline |
| Svolder AB |
| Dios Fastigheter |
Svolder AB and Dios Fastigheter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Svolder AB and Dios Fastigheter
The main advantage of trading using opposite Svolder AB and Dios Fastigheter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Svolder AB position performs unexpectedly, Dios 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 Dios Fastigheter will offset losses from the drop in Dios Fastigheter's long position.| Svolder AB vs. Investment AB Latour | Svolder AB vs. Bure Equity AB | Svolder AB vs. Kinnevik Investment AB | Svolder AB vs. Industrivarden AB ser |
| Dios Fastigheter vs. Fabege AB | Dios Fastigheter vs. Wihlborgs Fastigheter AB | Dios Fastigheter vs. Castellum AB | Dios Fastigheter vs. Fastighets AB Balder |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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