Correlation Between Dios Fastigheter and AB Sagax

Can any of the company-specific risk be diversified away by investing in both Dios Fastigheter and AB Sagax 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 AB Sagax 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 AB Sagax, you can compare the effects of market volatilities on Dios Fastigheter and AB Sagax 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 AB Sagax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dios Fastigheter and AB Sagax.

Diversification Opportunities for Dios Fastigheter and AB Sagax

0.63

Correlation Coefficient

Dios Fastigheter  AB Sagax

Poor diversification

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

Pair Corralation between Dios Fastigheter and AB Sagax

Assuming the 90 days trading horizon Dios Fastigheter is expected to generate 2.59 times less return on investment than AB Sagax. In addition to that, Dios Fastigheter is 1.76 times more volatile than AB Sagax. It trades about 0.03 of its total potential returns per unit of risk. AB Sagax is currently generating about 0.11 per unit of volatility. If you would invest  3,193  in AB Sagax on April 22, 2025 and sell it today you would earn a total of  152.00  from holding AB Sagax or generate 4.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

Dios Fastigheter AB  vs.  AB Sagax

Dios Fastigheter

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Dios Fastigheter AB are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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.

AB Sagax

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AB Sagax are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong technical and fundamental indicators, AB Sagax is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Dios Fastigheter and AB Sagax

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

The idea behind Dios Fastigheter AB and AB Sagax 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.