Correlation Between Wihlborgs Fastigheter and Cibus Nordic
Can any of the company-specific risk be diversified away by investing in both Wihlborgs Fastigheter and Cibus Nordic 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 Wihlborgs Fastigheter and Cibus Nordic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wihlborgs Fastigheter AB and Cibus Nordic Real, you can compare the effects of market volatilities on Wihlborgs Fastigheter and Cibus Nordic 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 Wihlborgs Fastigheter with a short position of Cibus Nordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wihlborgs Fastigheter and Cibus Nordic.
Diversification Opportunities for Wihlborgs Fastigheter and Cibus Nordic
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wihlborgs and Cibus is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Wihlborgs Fastigheter AB and Cibus Nordic Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cibus Nordic Real and Wihlborgs Fastigheter 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 Wihlborgs Fastigheter AB are associated (or correlated) with Cibus Nordic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cibus Nordic Real has no effect on the direction of Wihlborgs Fastigheter i.e., Wihlborgs Fastigheter and Cibus Nordic go up and down completely randomly.
Pair Corralation between Wihlborgs Fastigheter and Cibus Nordic
Assuming the 90 days trading horizon Wihlborgs Fastigheter AB is expected to under-perform the Cibus Nordic. In addition to that, Wihlborgs Fastigheter is 1.13 times more volatile than Cibus Nordic Real. It trades about -0.24 of its total potential returns per unit of risk. Cibus Nordic Real is currently generating about -0.13 per unit of volatility. If you would invest 17,353 in Cibus Nordic Real on August 24, 2024 and sell it today you would lose (678.00) from holding Cibus Nordic Real or give up 3.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wihlborgs Fastigheter AB vs. Cibus Nordic Real
Performance |
| Timeline |
| Wihlborgs Fastigheter |
| Cibus Nordic Real |
Wihlborgs Fastigheter and Cibus Nordic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wihlborgs Fastigheter and Cibus Nordic
The main advantage of trading using opposite Wihlborgs Fastigheter and Cibus Nordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wihlborgs Fastigheter position performs unexpectedly, Cibus Nordic 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 Cibus Nordic will offset losses from the drop in Cibus Nordic's long position.| Wihlborgs Fastigheter vs. Fabege AB | Wihlborgs Fastigheter vs. Samhllsbyggnadsbolaget i Norden | Wihlborgs Fastigheter vs. Fastighets AB Balder | Wihlborgs Fastigheter vs. Axfood 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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