Correlation Between Evolution and Corem Property

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

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

Diversification Opportunities for Evolution and Corem Property

-0.43

Correlation Coefficient

Evolution  Corem Property

Very good diversification

The 3 months correlation between Evolution and Corem is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Evolution AB and Corem Property Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corem Property Group and Evolution 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 Evolution AB are associated (or correlated) with Corem Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corem Property Group has no effect on the direction of Evolution i.e., Evolution and Corem Property go up and down completely randomly.

Pair Corralation between Evolution and Corem Property

Assuming the 90 days trading horizon Evolution AB is expected to generate 1.01 times more return on investment than Corem Property. However, Evolution is 1.01 times more volatile than Corem Property Group. It trades about 0.05 of its potential returns per unit of risk. Corem Property Group is currently generating about 0.0 per unit of risk. If you would invest  78,179  in Evolution AB on April 23, 2025 and sell it today you would earn a total of  5,041  from holding Evolution AB or generate 6.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Evolution AB  vs.  Corem Property Group

Evolution AB

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Evolution AB are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Evolution may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Corem Property Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Corem Property Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Corem Property is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Evolution and Corem Property

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

The idea behind Evolution AB and Corem Property Group 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.