Correlation Between Fasadgruppen Group and Saxlund Group

Can any of the company-specific risk be diversified away by investing in both Fasadgruppen Group and Saxlund Group 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 Fasadgruppen Group and Saxlund Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fasadgruppen Group AB and Saxlund Group AB, you can compare the effects of market volatilities on Fasadgruppen Group and Saxlund Group 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 Fasadgruppen Group with a short position of Saxlund Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fasadgruppen Group and Saxlund Group.

Diversification Opportunities for Fasadgruppen Group and Saxlund Group

-0.37

Correlation Coefficient

Fasadgruppen Group  Saxlund Group

Very good diversification

The 3 months correlation between Fasadgruppen and Saxlund is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Fasadgruppen Group AB and Saxlund Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saxlund Group AB and Fasadgruppen Group 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 Fasadgruppen Group AB are associated (or correlated) with Saxlund Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saxlund Group AB has no effect on the direction of Fasadgruppen Group i.e., Fasadgruppen Group and Saxlund Group go up and down completely randomly.

Pair Corralation between Fasadgruppen Group and Saxlund Group

Assuming the 90 days horizon Fasadgruppen Group AB is expected to generate 0.43 times more return on investment than Saxlund Group. However, Fasadgruppen Group AB is 2.33 times less risky than Saxlund Group. It trades about 0.02 of its potential returns per unit of risk. Saxlund Group AB is currently generating about -0.05 per unit of risk. If you would invest  4,399  in Fasadgruppen Group AB on September 13, 2024 and sell it today you would earn a total of  66.00  from holding Fasadgruppen Group AB or generate 1.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Fasadgruppen Group AB  vs.  Saxlund Group AB

Fasadgruppen Group

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Fasadgruppen Group AB are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Fasadgruppen Group is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Saxlund Group AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Saxlund Group AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Fasadgruppen Group and Saxlund Group

The main advantage of trading using opposite Fasadgruppen Group and Saxlund Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fasadgruppen Group position performs unexpectedly, Saxlund Group 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 Saxlund Group will offset losses from the drop in Saxlund Group's long position.

The idea behind Fasadgruppen Group AB and Saxlund Group AB 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.