Correlation Between Citycon Oyj and Dis Fastigheter
Can any of the company-specific risk be diversified away by investing in both Citycon Oyj and Dis 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 Citycon Oyj and Dis Fastigheter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citycon Oyj and Dis Fastigheter AB, you can compare the effects of market volatilities on Citycon Oyj and Dis 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 Citycon Oyj with a short position of Dis Fastigheter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citycon Oyj and Dis Fastigheter.
Diversification Opportunities for Citycon Oyj and Dis Fastigheter
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citycon and Dis is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Citycon Oyj and Dis Fastigheter AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dis Fastigheter AB and Citycon Oyj 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 Citycon Oyj are associated (or correlated) with Dis Fastigheter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dis Fastigheter AB has no effect on the direction of Citycon Oyj i.e., Citycon Oyj and Dis Fastigheter go up and down completely randomly.
Pair Corralation between Citycon Oyj and Dis Fastigheter
Assuming the 90 days trading horizon Citycon Oyj is expected to under-perform the Dis Fastigheter. But the stock apears to be less risky and, when comparing its historical volatility, Citycon Oyj is 1.11 times less risky than Dis Fastigheter. The stock trades about -0.05 of its potential returns per unit of risk. The Dis Fastigheter AB is currently generating about 0.11 of returns per unit of risk over similar time horizon. 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 | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Citycon Oyj vs. Dis Fastigheter AB
Performance |
Timeline |
Citycon Oyj |
Dis Fastigheter AB |
Citycon Oyj and Dis Fastigheter Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citycon Oyj and Dis Fastigheter
The main advantage of trading using opposite Citycon Oyj and Dis Fastigheter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citycon Oyj position performs unexpectedly, Dis 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 Dis Fastigheter will offset losses from the drop in Dis Fastigheter's long position.Citycon Oyj vs. NEW WORLD DEVCO | Citycon Oyj vs. OPEN HOUSE GROUP | Citycon Oyj vs. AEON MALL LTD | Citycon Oyj vs. Hufvudstaden AB |
Dis Fastigheter vs. NEW WORLD DEVCO | Dis Fastigheter vs. OPEN HOUSE GROUP | Dis Fastigheter vs. AEON MALL LTD | Dis Fastigheter 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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