Correlation Between Corem Property and Sdiptech

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Corem Property and Sdiptech 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 Corem Property and Sdiptech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corem Property Group and Sdiptech AB, you can compare the effects of market volatilities on Corem Property and Sdiptech 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 Corem Property with a short position of Sdiptech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corem Property and Sdiptech.

Diversification Opportunities for Corem Property and Sdiptech

0.79
  Correlation Coefficient

Poor diversification

The 3 months correlation between Corem and Sdiptech is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Corem Property Group and Sdiptech AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sdiptech AB and Corem Property 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 Corem Property Group are associated (or correlated) with Sdiptech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sdiptech AB has no effect on the direction of Corem Property i.e., Corem Property and Sdiptech go up and down completely randomly.

Pair Corralation between Corem Property and Sdiptech

Assuming the 90 days trading horizon Corem Property is expected to generate 1.87 times less return on investment than Sdiptech. But when comparing it to its historical volatility, Corem Property Group is 2.23 times less risky than Sdiptech. It trades about 0.19 of its potential returns per unit of risk. Sdiptech AB is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  10,927  in Sdiptech AB on May 2, 2025 and sell it today you would earn a total of  2,473  from holding Sdiptech AB or generate 22.63% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Corem Property Group  vs.  Sdiptech AB

 Performance 
       Timeline  
Corem Property Group 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Corem Property Group are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Corem Property may actually be approaching a critical reversion point that can send shares even higher in August 2025.
Sdiptech AB 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Sdiptech AB are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Sdiptech reported solid returns over the last few months and may actually be approaching a breakup point.

Corem Property and Sdiptech Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Corem Property and Sdiptech

The main advantage of trading using opposite Corem Property and Sdiptech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corem Property position performs unexpectedly, Sdiptech 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 Sdiptech will offset losses from the drop in Sdiptech's long position.
The idea behind Corem Property Group and Sdiptech 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.
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

Other Complementary Tools

Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Fundamental Analysis
View fundamental data based on most recent published financial statements
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments