Correlation Between NP3 Fastigheter and Corem Property

Can any of the company-specific risk be diversified away by investing in both NP3 Fastigheter 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 NP3 Fastigheter and Corem Property into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NP3 Fastigheter AB and Corem Property Group, you can compare the effects of market volatilities on NP3 Fastigheter 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 NP3 Fastigheter with a short position of Corem Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of NP3 Fastigheter and Corem Property.

Diversification Opportunities for NP3 Fastigheter and Corem Property

0.82

Correlation Coefficient

NP3 Fastigheter  Corem Property

Very poor diversification

The 3 months correlation between NP3 and Corem is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding NP3 Fastigheter 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 NP3 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 NP3 Fastigheter 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 NP3 Fastigheter i.e., NP3 Fastigheter and Corem Property go up and down completely randomly.

Pair Corralation between NP3 Fastigheter and Corem Property

Assuming the 90 days trading horizon NP3 Fastigheter is expected to generate 1.58 times less return on investment than Corem Property. In addition to that, NP3 Fastigheter is 1.47 times more volatile than Corem Property Group. It trades about 0.09 of its total potential returns per unit of risk. Corem Property Group is currently generating about 0.21 per unit of volatility. If you would invest  20,734  in Corem Property Group on April 21, 2025 and sell it today you would earn a total of  2,966  from holding Corem Property Group or generate 14.31% return on investment over 90 days.

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

NP3 Fastigheter AB  vs.  Corem Property Group

NP3 Fastigheter AB

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in NP3 Fastigheter AB are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, NP3 Fastigheter may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Corem Property Group

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Corem Property Group are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Corem Property reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with NP3 Fastigheter and Corem Property

The main advantage of trading using opposite NP3 Fastigheter and Corem Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NP3 Fastigheter 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 NP3 Fastigheter 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.

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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.