Correlation Between Wihlborgs Fastigheter and K Fast
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By analyzing existing cross correlation between Wihlborgs Fastigheter AB and K Fast Holding AB, you can compare the effects of market volatilities on Wihlborgs Fastigheter and K Fast 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 K Fast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wihlborgs Fastigheter and K Fast.
Diversification Opportunities for Wihlborgs Fastigheter and K Fast
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wihlborgs and KFAST-B is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Wihlborgs Fastigheter AB and K Fast Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on K Fast Holding 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 K Fast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of K Fast Holding has no effect on the direction of Wihlborgs Fastigheter i.e., Wihlborgs Fastigheter and K Fast go up and down completely randomly.
Pair Corralation between Wihlborgs Fastigheter and K Fast
Assuming the 90 days trading horizon Wihlborgs Fastigheter AB is expected to generate 0.66 times more return on investment than K Fast. However, Wihlborgs Fastigheter AB is 1.52 times less risky than K Fast. It trades about 0.04 of its potential returns per unit of risk. K Fast Holding AB is currently generating about -0.01 per unit of risk. If you would invest 7,994 in Wihlborgs Fastigheter AB on September 3, 2024 and sell it today you would earn a total of 3,106 from holding Wihlborgs Fastigheter AB or generate 38.85% 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. K Fast Holding AB
Performance |
| Timeline |
| Wihlborgs Fastigheter |
| K Fast Holding |
Wihlborgs Fastigheter and K Fast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wihlborgs Fastigheter and K Fast
The main advantage of trading using opposite Wihlborgs Fastigheter and K Fast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wihlborgs Fastigheter position performs unexpectedly, K Fast 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 K Fast will offset losses from the drop in K Fast's long position.| Wihlborgs Fastigheter vs. Fabege AB | Wihlborgs Fastigheter vs. Castellum AB | Wihlborgs Fastigheter vs. Fastighets AB Balder | Wihlborgs Fastigheter vs. Wallenstam AB |
| K Fast vs. Fastighets AB Balder | K Fast vs. Nyfosa AB | K Fast vs. Dios Fastigheter AB | K Fast vs. Corem Property Group |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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