Correlation Between EgnsINVEST Ejendomme and Fast Ejendom

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

By analyzing existing cross correlation between EgnsINVEST Ejendomme Tyskland and Fast Ejendom, you can compare the effects of market volatilities on EgnsINVEST Ejendomme and Fast Ejendom 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 EgnsINVEST Ejendomme with a short position of Fast Ejendom. Check out your portfolio center. Please also check ongoing floating volatility patterns of EgnsINVEST Ejendomme and Fast Ejendom.

Diversification Opportunities for EgnsINVEST Ejendomme and Fast Ejendom

0.7

Correlation Coefficient

EgnsINVEST Ejendomme  Fast Ejendom

Poor diversification

The 3 months correlation between EgnsINVEST and Fast is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding EgnsINVEST Ejendomme Tyskland and Fast Ejendom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fast Ejendom and EgnsINVEST Ejendomme 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 EgnsINVEST Ejendomme Tyskland are associated (or correlated) with Fast Ejendom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fast Ejendom has no effect on the direction of EgnsINVEST Ejendomme i.e., EgnsINVEST Ejendomme and Fast Ejendom go up and down completely randomly.

Pair Corralation between EgnsINVEST Ejendomme and Fast Ejendom

Assuming the 90 days trading horizon EgnsINVEST Ejendomme Tyskland is expected to generate 0.91 times more return on investment than Fast Ejendom. However, EgnsINVEST Ejendomme Tyskland is 1.1 times less risky than Fast Ejendom. It trades about 0.27 of its potential returns per unit of risk. Fast Ejendom is currently generating about 0.07 per unit of risk. If you would invest  13,800  in EgnsINVEST Ejendomme Tyskland on April 24, 2025 and sell it today you would earn a total of  3,800  from holding EgnsINVEST Ejendomme Tyskland or generate 27.54% return on investment over 90 days.

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

EgnsINVEST Ejendomme Tyskland  vs.  Fast Ejendom

EgnsINVEST Ejendomme

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in EgnsINVEST Ejendomme Tyskland are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, EgnsINVEST Ejendomme sustained solid returns over the last few months and may actually be approaching a breakup point.

Fast Ejendom

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Fast Ejendom are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very weak fundamental indicators, Fast Ejendom may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with EgnsINVEST Ejendomme and Fast Ejendom

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

The idea behind EgnsINVEST Ejendomme Tyskland and Fast Ejendom 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.