Correlation Between Serstech and Tingsvalvet Fastighets

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

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

Diversification Opportunities for Serstech and Tingsvalvet Fastighets

-0.91

Correlation Coefficient

Serstech  Tingsvalvet Fastighets

Pay attention - limited upside

The 3 months correlation between Serstech and Tingsvalvet is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Serstech AB and Tingsvalvet Fastighets AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tingsvalvet Fastighets and Serstech 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 Serstech AB are associated (or correlated) with Tingsvalvet Fastighets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tingsvalvet Fastighets has no effect on the direction of Serstech i.e., Serstech and Tingsvalvet Fastighets go up and down completely randomly.

Pair Corralation between Serstech and Tingsvalvet Fastighets

Assuming the 90 days trading horizon Serstech AB is expected to under-perform the Tingsvalvet Fastighets. In addition to that, Serstech is 3.85 times more volatile than Tingsvalvet Fastighets AB. It trades about -0.13 of its total potential returns per unit of risk. Tingsvalvet Fastighets AB is currently generating about 0.29 per unit of volatility. If you would invest  32,178  in Tingsvalvet Fastighets AB on April 24, 2025 and sell it today you would earn a total of  4,722  from holding Tingsvalvet Fastighets AB or generate 14.67% return on investment over 90 days.

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

Serstech AB  vs.  Tingsvalvet Fastighets AB

Serstech AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Serstech AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Tingsvalvet Fastighets

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tingsvalvet Fastighets AB are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Tingsvalvet Fastighets reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Serstech and Tingsvalvet Fastighets

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

The idea behind Serstech AB and Tingsvalvet Fastighets 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.