Correlation Between Alstria Office and Mobilezone Holding

Can any of the company-specific risk be diversified away by investing in both Alstria Office and Mobilezone Holding 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 Alstria Office and Mobilezone Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between alstria office REIT AG and mobilezone holding AG, you can compare the effects of market volatilities on Alstria Office and Mobilezone Holding 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 Alstria Office with a short position of Mobilezone Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alstria Office and Mobilezone Holding.

Diversification Opportunities for Alstria Office and Mobilezone Holding

-0.39

Correlation Coefficient

Alstria Office  Mobilezone Holding

Very good diversification

The 3 months correlation between Alstria and Mobilezone is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding alstria office REIT AG and mobilezone holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on mobilezone holding and Alstria Office 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 alstria office REIT AG are associated (or correlated) with Mobilezone Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of mobilezone holding has no effect on the direction of Alstria Office i.e., Alstria Office and Mobilezone Holding go up and down completely randomly.

Pair Corralation between Alstria Office and Mobilezone Holding

Assuming the 90 days trading horizon alstria office REIT AG is expected to under-perform the Mobilezone Holding. In addition to that, Alstria Office is 1.55 times more volatile than mobilezone holding AG. It trades about -0.2 of its total potential returns per unit of risk. mobilezone holding AG is currently generating about -0.29 per unit of volatility. If you would invest  1,424  in mobilezone holding AG on October 9, 2024 and sell it today you would lose (344.00) from holding mobilezone holding AG or give up 24.16% of portfolio value over 90 days.

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

alstria office REIT AG  vs.  mobilezone holding AG

alstria office REIT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days alstria office REIT AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent essential indicators, Alstria Office is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

mobilezone holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days mobilezone holding AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Alstria Office and Mobilezone Holding

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

The idea behind alstria office REIT AG and mobilezone holding AG 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.