Correlation Between Wihlborgs Fastigheter and AB Sagax
Can any of the company-specific risk be diversified away by investing in both Wihlborgs Fastigheter and AB Sagax 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 AB Sagax 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 AB Sagax, you can compare the effects of market volatilities on Wihlborgs Fastigheter and AB Sagax 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 AB Sagax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wihlborgs Fastigheter and AB Sagax.
Diversification Opportunities for Wihlborgs Fastigheter and AB Sagax
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wihlborgs and SAGA-D is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Wihlborgs Fastigheter AB and AB Sagax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AB Sagax 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 AB Sagax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AB Sagax has no effect on the direction of Wihlborgs Fastigheter i.e., Wihlborgs Fastigheter and AB Sagax go up and down completely randomly.
Pair Corralation between Wihlborgs Fastigheter and AB Sagax
Assuming the 90 days trading horizon Wihlborgs Fastigheter AB is expected to under-perform the AB Sagax. In addition to that, Wihlborgs Fastigheter is 2.14 times more volatile than AB Sagax. It trades about -0.24 of its total potential returns per unit of risk. AB Sagax is currently generating about -0.24 per unit of volatility. If you would invest 3,220 in AB Sagax on August 24, 2024 and sell it today you would lose (120.00) from holding AB Sagax or give up 3.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wihlborgs Fastigheter AB vs. AB Sagax
Performance |
| Timeline |
| Wihlborgs Fastigheter |
| AB Sagax |
Wihlborgs Fastigheter and AB Sagax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wihlborgs Fastigheter and AB Sagax
The main advantage of trading using opposite Wihlborgs Fastigheter and AB Sagax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wihlborgs Fastigheter position performs unexpectedly, AB Sagax 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 AB Sagax will offset losses from the drop in AB Sagax's long position.| Wihlborgs Fastigheter vs. Fastighets AB Balder | Wihlborgs Fastigheter vs. Fabege AB | Wihlborgs Fastigheter vs. AB Sagax | Wihlborgs Fastigheter vs. Dios Fastigheter AB |
| AB Sagax vs. AB Sagax | AB Sagax vs. Samhaellsbyggnadsbolaget i Norden | AB Sagax vs. AB Sagax | AB Sagax 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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