Correlation Between Dis Fastigheter and Immofinanz
Can any of the company-specific risk be diversified away by investing in both Dis Fastigheter and Immofinanz 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 Dis Fastigheter and Immofinanz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dis Fastigheter AB and Immofinanz AG, you can compare the effects of market volatilities on Dis Fastigheter and Immofinanz 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 Dis Fastigheter with a short position of Immofinanz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dis Fastigheter and Immofinanz.
Diversification Opportunities for Dis Fastigheter and Immofinanz
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dis and Immofinanz is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Dis Fastigheter AB and Immofinanz AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immofinanz AG and Dis 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 Dis Fastigheter AB are associated (or correlated) with Immofinanz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immofinanz AG has no effect on the direction of Dis Fastigheter i.e., Dis Fastigheter and Immofinanz go up and down completely randomly.
Pair Corralation between Dis Fastigheter and Immofinanz
Assuming the 90 days horizon Dis Fastigheter AB is expected to generate 1.08 times more return on investment than Immofinanz. However, Dis Fastigheter is 1.08 times more volatile than Immofinanz AG. It trades about 0.11 of its potential returns per unit of risk. Immofinanz AG is currently generating about -0.02 per unit of risk. If you would invest 635.00 in Dis Fastigheter AB on September 23, 2024 and sell it today you would earn a total of 24.00 from holding Dis Fastigheter AB or generate 3.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Dis Fastigheter AB vs. Immofinanz AG
Performance |
Timeline |
Dis Fastigheter AB |
Immofinanz AG |
Dis Fastigheter and Immofinanz Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dis Fastigheter and Immofinanz
The main advantage of trading using opposite Dis Fastigheter and Immofinanz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dis Fastigheter position performs unexpectedly, Immofinanz 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 Immofinanz will offset losses from the drop in Immofinanz's long position.Dis Fastigheter vs. NEW WORLD DEVCO | Dis Fastigheter vs. OPEN HOUSE GROUP | Dis Fastigheter vs. AEON MALL LTD | Dis Fastigheter vs. Hufvudstaden AB |
Immofinanz vs. NEW WORLD DEVCO | Immofinanz vs. OPEN HOUSE GROUP | Immofinanz vs. AEON MALL LTD | Immofinanz vs. Hufvudstaden AB |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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