Correlation Between Platzer Fastigheter and Wihlborgs Fastigheter

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

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

Diversification Opportunities for Platzer Fastigheter and Wihlborgs Fastigheter

0.92

Correlation Coefficient

Platzer Fastigheter  Wihlborgs Fastigheter

Almost no diversification

The 3 months correlation between Platzer and Wihlborgs is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Platzer Fastigheter Holding and Wihlborgs Fastigheter AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wihlborgs Fastigheter and Platzer 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 Platzer Fastigheter Holding are associated (or correlated) with Wihlborgs Fastigheter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wihlborgs Fastigheter has no effect on the direction of Platzer Fastigheter i.e., Platzer Fastigheter and Wihlborgs Fastigheter go up and down completely randomly.

Pair Corralation between Platzer Fastigheter and Wihlborgs Fastigheter

Assuming the 90 days trading horizon Platzer Fastigheter is expected to generate 10.61 times less return on investment than Wihlborgs Fastigheter. In addition to that, Platzer Fastigheter is 1.15 times more volatile than Wihlborgs Fastigheter AB. It trades about 0.0 of its total potential returns per unit of risk. Wihlborgs Fastigheter AB is currently generating about 0.04 per unit of volatility. If you would invest  7,966  in Wihlborgs Fastigheter AB on October 22, 2024 and sell it today you would earn a total of  2,584  from holding Wihlborgs Fastigheter AB or generate 32.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Platzer Fastigheter Holding  vs.  Wihlborgs Fastigheter AB

Platzer Fastigheter

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Platzer Fastigheter Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Wihlborgs Fastigheter

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Wihlborgs Fastigheter AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Platzer Fastigheter and Wihlborgs Fastigheter

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

The idea behind Platzer Fastigheter Holding and Wihlborgs 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.