Correlation Between HEBA Fastighets and Eastnine

Can any of the company-specific risk be diversified away by investing in both HEBA Fastighets and Eastnine 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 Eastnine 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 Eastnine AB, you can compare the effects of market volatilities on HEBA Fastighets and Eastnine 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 Eastnine. Check out your portfolio center. Please also check ongoing floating volatility patterns of HEBA Fastighets and Eastnine.

Diversification Opportunities for HEBA Fastighets and Eastnine

0.74

Correlation Coefficient

HEBA Fastighets  Eastnine

Poor diversification

The 3 months correlation between HEBA and Eastnine is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding HEBA Fastighets AB and Eastnine AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastnine AB 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 Eastnine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastnine AB has no effect on the direction of HEBA Fastighets i.e., HEBA Fastighets and Eastnine go up and down completely randomly.

Pair Corralation between HEBA Fastighets and Eastnine

Assuming the 90 days trading horizon HEBA Fastighets is expected to generate 1.38 times less return on investment than Eastnine. In addition to that, HEBA Fastighets is 1.47 times more volatile than Eastnine AB. It trades about 0.06 of its total potential returns per unit of risk. Eastnine AB is currently generating about 0.12 per unit of volatility. If you would invest  4,700  in Eastnine AB on August 2, 2025 and sell it today you would earn a total of  370.00  from holding Eastnine AB or generate 7.87% return on investment over 90 days.

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

HEBA Fastighets AB  vs.  Eastnine AB

HEBA Fastighets AB

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in HEBA Fastighets AB are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental drivers, HEBA Fastighets is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Eastnine AB

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Eastnine AB are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Eastnine may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with HEBA Fastighets and Eastnine

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

The idea behind HEBA Fastighets AB and Eastnine 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 Global Correlations module to find global opportunities by holding instruments from different markets.