Correlation Between TradeDoubler and Platzer Fastigheter

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

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

Diversification Opportunities for TradeDoubler and Platzer Fastigheter

-0.49

Correlation Coefficient

TradeDoubler  Platzer Fastigheter

Very good diversification

The 3 months correlation between TradeDoubler and Platzer is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding TradeDoubler 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 TradeDoubler 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 TradeDoubler 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 TradeDoubler i.e., TradeDoubler and Platzer Fastigheter go up and down completely randomly.

Pair Corralation between TradeDoubler and Platzer Fastigheter

Assuming the 90 days trading horizon TradeDoubler AB is expected to generate 1.16 times more return on investment than Platzer Fastigheter. However, TradeDoubler is 1.16 times more volatile than Platzer Fastigheter Holding. It trades about -0.02 of its potential returns per unit of risk. Platzer Fastigheter Holding is currently generating about -0.07 per unit of risk. If you would invest  367.00  in TradeDoubler AB on September 3, 2024 and sell it today you would lose (17.00) from holding TradeDoubler AB or give up 4.63% of portfolio value over 90 days.

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

TradeDoubler AB  vs.  Platzer Fastigheter Holding

TradeDoubler AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TradeDoubler AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, TradeDoubler is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

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 latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with TradeDoubler and Platzer Fastigheter

The main advantage of trading using opposite TradeDoubler and Platzer Fastigheter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TradeDoubler 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.

The idea behind TradeDoubler AB and Platzer Fastigheter Holding 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.