Correlation Between Fastighets and Globalfoundries

Specify exactly 2 symbols:
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 Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Fastighets AB Balder  vs.  Globalfoundries

 Performance 
       Timeline  
Fastighets AB Balder 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Fastighets AB Balder has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
Globalfoundries 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Globalfoundries are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent technical and fundamental indicators, Globalfoundries unveiled solid returns over the last few months and may actually be approaching a breakup point.

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.
The idea behind Fastighets AB Balder and Globalfoundries 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.
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.