Correlation Between Dios Fastigheter and Logistea

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

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

Diversification Opportunities for Dios Fastigheter and Logistea

0.63

Correlation Coefficient

Dios Fastigheter  Logistea

Poor diversification

The 3 months correlation between Dios and Logistea is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Dios Fastigheter AB and Logistea AB Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logistea AB Series and Dios Fastigheter 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 Dios Fastigheter AB are associated (or correlated) with Logistea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logistea AB Series has no effect on the direction of Dios Fastigheter i.e., Dios Fastigheter and Logistea go up and down completely randomly.

Pair Corralation between Dios Fastigheter and Logistea

Assuming the 90 days trading horizon Dios Fastigheter is expected to generate 21.47 times less return on investment than Logistea. But when comparing it to its historical volatility, Dios Fastigheter AB is 1.64 times less risky than Logistea. It trades about 0.01 of its potential returns per unit of risk. Logistea AB Series is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  1,425  in Logistea AB Series on April 21, 2025 and sell it today you would earn a total of  197.00  from holding Logistea AB Series or generate 13.82% return on investment over 90 days.

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

Dios Fastigheter AB  vs.  Logistea AB Series

Dios Fastigheter

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dios Fastigheter AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Dios Fastigheter is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Logistea AB Series

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Logistea AB Series are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, Logistea sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Dios Fastigheter and Logistea

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

The idea behind Dios Fastigheter AB and Logistea AB Series 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.