Correlation Between HEBA Fastighets and Atrium Ljungberg

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

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

Diversification Opportunities for HEBA Fastighets and Atrium Ljungberg

0.3

Correlation Coefficient

HEBA Fastighets  Atrium Ljungberg

Weak diversification

The 3 months correlation between HEBA and Atrium is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding HEBA Fastighets 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 HEBA Fastighets 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 HEBA Fastighets 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 HEBA Fastighets i.e., HEBA Fastighets and Atrium Ljungberg go up and down completely randomly.

Pair Corralation between HEBA Fastighets and Atrium Ljungberg

Assuming the 90 days trading horizon HEBA Fastighets AB is expected to generate 0.97 times more return on investment than Atrium Ljungberg. However, HEBA Fastighets AB is 1.03 times less risky than Atrium Ljungberg. It trades about -0.03 of its potential returns per unit of risk. Atrium Ljungberg AB is currently generating about -0.04 per unit of risk. If you would invest  3,215  in HEBA Fastighets AB on July 1, 2025 and sell it today you would lose (120.00) from holding HEBA Fastighets AB or give up 3.73% of portfolio value over 90 days.

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

HEBA Fastighets AB  vs.  Atrium Ljungberg AB

HEBA Fastighets AB

Risk-Adjusted Performance

Weakest

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

Atrium Ljungberg

Risk-Adjusted Performance

Weakest

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 HEBA Fastighets and Atrium Ljungberg

The main advantage of trading using opposite HEBA Fastighets and Atrium Ljungberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HEBA Fastighets 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 HEBA Fastighets 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.