Correlation Between Systemair and Platzer Fastigheter
Can any of the company-specific risk be diversified away by investing in both Systemair and Platzer 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 Systemair and Platzer Fastigheter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Systemair AB and Platzer Fastigheter Holding, you can compare the effects of market volatilities on Systemair and Platzer 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 Systemair with a short position of Platzer Fastigheter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Systemair and Platzer Fastigheter.
Diversification Opportunities for Systemair and Platzer Fastigheter
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Systemair and Platzer is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Systemair AB and Platzer Fastigheter Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platzer Fastigheter and Systemair 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 Systemair AB are associated (or correlated) with Platzer Fastigheter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platzer Fastigheter has no effect on the direction of Systemair i.e., Systemair and Platzer Fastigheter go up and down completely randomly.
Pair Corralation between Systemair and Platzer Fastigheter
Assuming the 90 days trading horizon Systemair AB is expected to generate 1.29 times more return on investment than Platzer Fastigheter. However, Systemair is 1.29 times more volatile than Platzer Fastigheter Holding. It trades about 0.09 of its potential returns per unit of risk. Platzer Fastigheter Holding is currently generating about -0.14 per unit of risk. If you would invest 8,530 in Systemair AB on September 15, 2024 and sell it today you would earn a total of 1,050 from holding Systemair AB or generate 12.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Systemair AB vs. Platzer Fastigheter Holding
Performance |
Timeline |
Systemair AB |
Platzer Fastigheter |
Systemair and Platzer Fastigheter Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Systemair and Platzer Fastigheter
The main advantage of trading using opposite Systemair and Platzer Fastigheter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Systemair position performs unexpectedly, Platzer 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 Platzer Fastigheter will offset losses from the drop in Platzer Fastigheter's long position.Systemair vs. Skandinaviska Enskilda Banken | Systemair vs. Skandinaviska Enskilda Banken | Systemair vs. Swedbank AB | Systemair vs. Svenska Handelsbanken AB |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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