Correlation Between FRASERS PROPERTY and Dis Fastigheter

Can any of the company-specific risk be diversified away by investing in both FRASERS PROPERTY and Dis 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 FRASERS PROPERTY and Dis Fastigheter into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between FRASERS PROPERTY and Dis Fastigheter AB, you can compare the effects of market volatilities on FRASERS PROPERTY and Dis 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 FRASERS PROPERTY with a short position of Dis Fastigheter. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRASERS PROPERTY and Dis Fastigheter.

Diversification Opportunities for FRASERS PROPERTY and Dis Fastigheter

-0.56

Correlation Coefficient

FRASERS PROPERTY  Dis Fastigheter

Excellent diversification

The 3 months correlation between FRASERS and Dis is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding FRASERS PROPERTY and Dis Fastigheter AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dis Fastigheter AB and FRASERS PROPERTY 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 FRASERS PROPERTY are associated (or correlated) with Dis Fastigheter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dis Fastigheter AB has no effect on the direction of FRASERS PROPERTY i.e., FRASERS PROPERTY and Dis Fastigheter go up and down completely randomly.

Pair Corralation between FRASERS PROPERTY and Dis Fastigheter

Assuming the 90 days horizon FRASERS PROPERTY is expected to generate 1.26 times more return on investment than Dis Fastigheter. However, FRASERS PROPERTY is 1.26 times more volatile than Dis Fastigheter AB. It trades about 0.09 of its potential returns per unit of risk. Dis Fastigheter AB is currently generating about -0.07 per unit of risk. If you would invest  50.00  in FRASERS PROPERTY on October 26, 2024 and sell it today you would earn a total of  11.00  from holding FRASERS PROPERTY or generate 22.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.2%
Values	Daily Returns

FRASERS PROPERTY  vs.  Dis Fastigheter AB

FRASERS PROPERTY

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in FRASERS PROPERTY are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, FRASERS PROPERTY may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Dis Fastigheter AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dis Fastigheter AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with FRASERS PROPERTY and Dis Fastigheter

The main advantage of trading using opposite FRASERS PROPERTY and Dis Fastigheter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRASERS PROPERTY position performs unexpectedly, Dis 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 Dis Fastigheter will offset losses from the drop in Dis Fastigheter's long position.

The idea behind FRASERS PROPERTY and Dis Fastigheter AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..