Correlation Between Wihlborgs Fastigheter and Dios Fastigheter
Can any of the company-specific risk be diversified away by investing in both Wihlborgs Fastigheter 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 Wihlborgs Fastigheter and Dios Fastigheter 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 Dios Fastigheter AB, you can compare the effects of market volatilities on Wihlborgs Fastigheter 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 Wihlborgs Fastigheter with a short position of Dios Fastigheter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wihlborgs Fastigheter and Dios Fastigheter.
Diversification Opportunities for Wihlborgs Fastigheter and Dios Fastigheter
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wihlborgs and Dios is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Wihlborgs Fastigheter 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 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 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 Wihlborgs Fastigheter i.e., Wihlborgs Fastigheter and Dios Fastigheter go up and down completely randomly.
Pair Corralation between Wihlborgs Fastigheter and Dios Fastigheter
Assuming the 90 days trading horizon Wihlborgs Fastigheter AB is expected to generate 1.0 times more return on investment than Dios Fastigheter. However, Wihlborgs Fastigheter AB is 1.0 times less risky than Dios Fastigheter. It trades about 0.07 of its potential returns per unit of risk. Dios Fastigheter AB is currently generating about 0.01 per unit of risk. If you would invest 8,753 in Wihlborgs Fastigheter AB on November 3, 2024 and sell it today you would earn a total of 2,227 from holding Wihlborgs Fastigheter AB or generate 25.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wihlborgs Fastigheter AB vs. Dios Fastigheter AB
Performance |
| Timeline |
| Wihlborgs Fastigheter |
| Dios Fastigheter |
Wihlborgs Fastigheter and Dios Fastigheter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wihlborgs Fastigheter and Dios Fastigheter
The main advantage of trading using opposite Wihlborgs Fastigheter and Dios Fastigheter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wihlborgs Fastigheter 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.| Wihlborgs Fastigheter vs. Fabege AB | Wihlborgs Fastigheter vs. Castellum AB | Wihlborgs Fastigheter vs. Fastighets AB Balder | Wihlborgs Fastigheter vs. Wallenstam AB |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |