Correlation Between Volati AB and Corem Property

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

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

Diversification Opportunities for Volati AB and Corem Property

0.82

Correlation Coefficient

Volati AB  Corem Property

Very poor diversification

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

Pair Corralation between Volati AB and Corem Property

Assuming the 90 days trading horizon Volati AB is expected to generate 3.93 times less return on investment than Corem Property. But when comparing it to its historical volatility, Volati AB is 3.26 times less risky than Corem Property. It trades about 0.17 of its potential returns per unit of risk. Corem Property Group is currently generating about 0.21 of returns per unit of risk over similar time horizon. 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

Volati AB  vs.  Corem Property Group

Volati AB

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Volati AB are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Volati AB is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

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 Volati AB and Corem Property

The main advantage of trading using opposite Volati AB and Corem Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Volati AB 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 Volati 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.