Correlation Between Corem Property and AB Sagax

Can any of the company-specific risk be diversified away by investing in both Corem Property 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 Corem Property and AB Sagax into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Corem Property and AB Sagax

-0.02

Correlation Coefficient

Corem Property  AB Sagax

Good diversification

The 3 months correlation between Corem and SAGA-B is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Corem Property Group and AB Sagax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AB Sagax and Corem 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 Corem Property Group 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 Corem Property i.e., Corem Property and AB Sagax go up and down completely randomly.

Pair Corralation between Corem Property and AB Sagax

Assuming the 90 days trading horizon Corem Property Group is expected to under-perform the AB Sagax. But the stock apears to be less risky and, when comparing its historical volatility, Corem Property Group is 1.47 times less risky than AB Sagax. The stock trades about -0.12 of its potential returns per unit of risk. The AB Sagax is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest  23,980  in AB Sagax on December 3, 2024 and sell it today you would lose (1,560) from holding AB Sagax or give up 6.51% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Corem Property Group  vs.  AB Sagax

Corem Property Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Corem Property Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

AB Sagax

Risk-Adjusted Performance

Very Weak

Over the last 90 days AB Sagax has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, AB Sagax is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Corem Property and AB Sagax

The main advantage of trading using opposite Corem Property and AB Sagax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corem Property 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.

The idea behind Corem Property Group and AB Sagax 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.