Correlation Between Kalleback Property and Stenhus Fastigheter

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

By analyzing existing cross correlation between Kalleback Property Invest and Stenhus Fastigheter I, you can compare the effects of market volatilities on Kalleback Property and Stenhus Fastigheter 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 Kalleback Property with a short position of Stenhus Fastigheter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kalleback Property and Stenhus Fastigheter.

Diversification Opportunities for Kalleback Property and Stenhus Fastigheter

0.2

Correlation Coefficient

Kalleback Property  Stenhus Fastigheter

Modest diversification

The 3 months correlation between Kalleback and Stenhus is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Kalleback Property Invest and Stenhus Fastigheter I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stenhus Fastigheter and Kalleback 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 Kalleback Property Invest are associated (or correlated) with Stenhus Fastigheter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stenhus Fastigheter has no effect on the direction of Kalleback Property i.e., Kalleback Property and Stenhus Fastigheter go up and down completely randomly.

Pair Corralation between Kalleback Property and Stenhus Fastigheter

Assuming the 90 days trading horizon Kalleback Property is expected to generate 1.76 times less return on investment than Stenhus Fastigheter. But when comparing it to its historical volatility, Kalleback Property Invest is 1.77 times less risky than Stenhus Fastigheter. It trades about 0.12 of its potential returns per unit of risk. Stenhus Fastigheter I is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  978.00  in Stenhus Fastigheter I on May 6, 2025 and sell it today you would earn a total of  102.00  from holding Stenhus Fastigheter I or generate 10.43% return on investment over 90 days.

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

Kalleback Property Invest  vs.  Stenhus Fastigheter I

Kalleback Property Invest

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Kalleback Property Invest are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Kalleback Property is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Stenhus Fastigheter

Risk-Adjusted Performance

OK

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

Pair Trading with Kalleback Property and Stenhus Fastigheter

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

The idea behind Kalleback Property Invest and Stenhus Fastigheter I 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.