Correlation Between Atrium Ljungberg and REDSUN PROPERTIES
Can any of the company-specific risk be diversified away by investing in both Atrium Ljungberg and REDSUN PROPERTIES 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 Atrium Ljungberg and REDSUN PROPERTIES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atrium Ljungberg AB and REDSUN PROPERTIES GROUP, you can compare the effects of market volatilities on Atrium Ljungberg and REDSUN PROPERTIES 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 Atrium Ljungberg with a short position of REDSUN PROPERTIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atrium Ljungberg and REDSUN PROPERTIES.
Diversification Opportunities for Atrium Ljungberg and REDSUN PROPERTIES
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Atrium and REDSUN is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Atrium Ljungberg AB and REDSUN PROPERTIES GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REDSUN PROPERTIES and Atrium Ljungberg 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 Atrium Ljungberg AB are associated (or correlated) with REDSUN PROPERTIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REDSUN PROPERTIES has no effect on the direction of Atrium Ljungberg i.e., Atrium Ljungberg and REDSUN PROPERTIES go up and down completely randomly.
Pair Corralation between Atrium Ljungberg and REDSUN PROPERTIES
Assuming the 90 days horizon Atrium Ljungberg AB is expected to under-perform the REDSUN PROPERTIES. But the stock apears to be less risky and, when comparing its historical volatility, Atrium Ljungberg AB is 25.17 times less risky than REDSUN PROPERTIES. The stock trades about -0.08 of its potential returns per unit of risk. The REDSUN PROPERTIES GROUP is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 0.10 in REDSUN PROPERTIES GROUP on September 23, 2024 and sell it today you would earn a total of 0.15 from holding REDSUN PROPERTIES GROUP or generate 150.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Atrium Ljungberg AB vs. REDSUN PROPERTIES GROUP
Performance |
Timeline |
Atrium Ljungberg |
REDSUN PROPERTIES |
Atrium Ljungberg and REDSUN PROPERTIES Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Atrium Ljungberg and REDSUN PROPERTIES
The main advantage of trading using opposite Atrium Ljungberg and REDSUN PROPERTIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atrium Ljungberg position performs unexpectedly, REDSUN PROPERTIES 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 REDSUN PROPERTIES will offset losses from the drop in REDSUN PROPERTIES's long position.Atrium Ljungberg vs. China Resources Land | Atrium Ljungberg vs. DEUTSCHE WOHNEN ADRS12 | Atrium Ljungberg vs. CTP NV EO | Atrium Ljungberg vs. SEAZEN GROUP LTD |
REDSUN PROPERTIES vs. United Airlines Holdings | REDSUN PROPERTIES vs. JD SPORTS FASH | REDSUN PROPERTIES vs. Gaztransport Technigaz SA | REDSUN PROPERTIES vs. United Breweries Co |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |