Correlation Between Atrium Ljungberg and Platzer Fastigheter

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Can any of the company-specific risk be diversified away by investing in both Atrium Ljungberg 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 Atrium Ljungberg and Platzer Fastigheter 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 Platzer Fastigheter Holding, you can compare the effects of market volatilities on Atrium Ljungberg 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 Atrium Ljungberg with a short position of Platzer Fastigheter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atrium Ljungberg and Platzer Fastigheter.

Diversification Opportunities for Atrium Ljungberg and Platzer Fastigheter

AtriumPlatzerDiversified AwayAtriumPlatzerDiversified Away100%
0.96
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Atrium and Platzer is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Atrium Ljungberg 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 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 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 Atrium Ljungberg i.e., Atrium Ljungberg and Platzer Fastigheter go up and down completely randomly.

Pair Corralation between Atrium Ljungberg and Platzer Fastigheter

Assuming the 90 days trading horizon Atrium Ljungberg AB is expected to under-perform the Platzer Fastigheter. But the stock apears to be less risky and, when comparing its historical volatility, Atrium Ljungberg AB is 1.27 times less risky than Platzer Fastigheter. The stock trades about -0.18 of its potential returns per unit of risk. The Platzer Fastigheter Holding is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest  10,183  in Platzer Fastigheter Holding on September 15, 2024 and sell it today you would lose (1,623) from holding Platzer Fastigheter Holding or give up 15.94% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Atrium Ljungberg AB  vs.  Platzer Fastigheter Holding

 Performance 
JavaScript chart by amCharts 3.21.15OctNov -20-15-10-50510
JavaScript chart by amCharts 3.21.15ATRLJ-B PLAZ-B
       Timeline  
Atrium Ljungberg 

Risk-Adjusted Performance

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Weak
 
Strong
Very Weak
Over the last 90 days Atrium Ljungberg AB 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 essential indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec190200210220230240250
Platzer Fastigheter 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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 unsteady performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec859095100105110115

Atrium Ljungberg and Platzer Fastigheter Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.49-1.93-1.37-0.81-0.250.270.821.371.922.47 0.080.100.120.140.160.180.20
JavaScript chart by amCharts 3.21.15ATRLJ-B PLAZ-B
       Returns  

Pair Trading with Atrium Ljungberg and Platzer Fastigheter

The main advantage of trading using opposite Atrium Ljungberg and Platzer Fastigheter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atrium Ljungberg 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 Atrium Ljungberg 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 Stocks Directory module to find actively traded stocks across global markets.

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