Correlation Between Fastighets and Globalfoundries
Can any of the company-specific risk be diversified away by investing in both Fastighets and Globalfoundries 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 Fastighets and Globalfoundries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fastighets AB Balder and Globalfoundries, you can compare the effects of market volatilities on Fastighets and Globalfoundries 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 Fastighets with a short position of Globalfoundries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fastighets and Globalfoundries.
Diversification Opportunities for Fastighets and Globalfoundries
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fastighets and Globalfoundries is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Fastighets AB Balder and Globalfoundries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globalfoundries and Fastighets 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 Fastighets AB Balder are associated (or correlated) with Globalfoundries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globalfoundries has no effect on the direction of Fastighets i.e., Fastighets and Globalfoundries go up and down completely randomly.
Pair Corralation between Fastighets and Globalfoundries
Assuming the 90 days horizon Fastighets AB Balder is expected to under-perform the Globalfoundries. But the pink sheet apears to be less risky and, when comparing its historical volatility, Fastighets AB Balder is 1.41 times less risky than Globalfoundries. The pink sheet trades about -0.13 of its potential returns per unit of risk. The Globalfoundries is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 4,025 in Globalfoundries on September 28, 2024 and sell it today you would earn a total of 439.00 from holding Globalfoundries or generate 10.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Fastighets AB Balder vs. Globalfoundries
Performance |
Timeline |
Fastighets AB Balder |
Globalfoundries |
Fastighets and Globalfoundries Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fastighets and Globalfoundries
The main advantage of trading using opposite Fastighets and Globalfoundries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fastighets position performs unexpectedly, Globalfoundries 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 Globalfoundries will offset losses from the drop in Globalfoundries' long position.Fastighets vs. Diageo PLC ADR | Fastighets vs. Weibo Corp | Fastighets vs. Reservoir Media | Fastighets vs. Keurig Dr Pepper |
Globalfoundries vs. NXP Semiconductors NV | Globalfoundries vs. Analog Devices | Globalfoundries vs. ON Semiconductor | Globalfoundries vs. Lattice Semiconductor |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |