Correlation Between FastPartner and Atrium Ljungberg

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

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

Diversification Opportunities for FastPartner and Atrium Ljungberg

0.61

Correlation Coefficient

FastPartner  Atrium Ljungberg

Poor diversification

The 3 months correlation between FastPartner and Atrium is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding FastPartner AB and Atrium Ljungberg AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atrium Ljungberg and FastPartner 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 FastPartner AB are associated (or correlated) with Atrium Ljungberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atrium Ljungberg has no effect on the direction of FastPartner i.e., FastPartner and Atrium Ljungberg go up and down completely randomly.

Pair Corralation between FastPartner and Atrium Ljungberg

Assuming the 90 days trading horizon FastPartner AB is expected to generate 1.14 times more return on investment than Atrium Ljungberg. However, FastPartner is 1.14 times more volatile than Atrium Ljungberg AB. It trades about 0.04 of its potential returns per unit of risk. Atrium Ljungberg AB is currently generating about 0.0 per unit of risk. If you would invest  4,991  in FastPartner AB on April 22, 2025 and sell it today you would earn a total of  159.00  from holding FastPartner AB or generate 3.19% return on investment over 90 days.

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

FastPartner AB  vs.  Atrium Ljungberg AB

FastPartner AB

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in FastPartner AB are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, FastPartner is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Atrium Ljungberg

Risk-Adjusted Performance

Very Weak

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

Pair Trading with FastPartner and Atrium Ljungberg

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

The idea behind FastPartner AB and Atrium Ljungberg 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.