Correlation Between TradeDoubler and Fastighetsbolaget
Can any of the company-specific risk be diversified away by investing in both TradeDoubler and Fastighetsbolaget 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 TradeDoubler and Fastighetsbolaget into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TradeDoubler AB and Fastighetsbolaget Emilshus AB, you can compare the effects of market volatilities on TradeDoubler and Fastighetsbolaget 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 TradeDoubler with a short position of Fastighetsbolaget. Check out your portfolio center. Please also check ongoing floating volatility patterns of TradeDoubler and Fastighetsbolaget.
Diversification Opportunities for TradeDoubler and Fastighetsbolaget
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TradeDoubler and Fastighetsbolaget is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding TradeDoubler AB and Fastighetsbolaget Emilshus AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fastighetsbolaget and TradeDoubler 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 TradeDoubler AB are associated (or correlated) with Fastighetsbolaget. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fastighetsbolaget has no effect on the direction of TradeDoubler i.e., TradeDoubler and Fastighetsbolaget go up and down completely randomly.
Pair Corralation between TradeDoubler and Fastighetsbolaget
Assuming the 90 days trading horizon TradeDoubler is expected to generate 23.27 times less return on investment than Fastighetsbolaget. In addition to that, TradeDoubler is 1.01 times more volatile than Fastighetsbolaget Emilshus AB. It trades about 0.0 of its total potential returns per unit of risk. Fastighetsbolaget Emilshus AB is currently generating about 0.06 per unit of volatility. If you would invest 2,796 in Fastighetsbolaget Emilshus AB on September 3, 2024 and sell it today you would earn a total of 2,094 from holding Fastighetsbolaget Emilshus AB or generate 74.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TradeDoubler AB vs. Fastighetsbolaget Emilshus AB
Performance |
| Timeline |
| TradeDoubler AB |
| Fastighetsbolaget |
TradeDoubler and Fastighetsbolaget Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TradeDoubler and Fastighetsbolaget
The main advantage of trading using opposite TradeDoubler and Fastighetsbolaget positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TradeDoubler position performs unexpectedly, Fastighetsbolaget 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 Fastighetsbolaget will offset losses from the drop in Fastighetsbolaget's long position.| TradeDoubler vs. Tele2 AB | TradeDoubler vs. Swedbank AB | TradeDoubler vs. Svenska Handelsbanken AB | TradeDoubler vs. Nordea Bank Abp |
| Fastighetsbolaget vs. HEBA Fastighets AB | Fastighetsbolaget vs. Platzer Fastigheter Holding | Fastighetsbolaget vs. Dios Fastigheter AB | Fastighetsbolaget vs. Atrium Ljungberg 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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