Correlation Between Alstria Office and Impax Asset

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

Diversification Opportunities for Alstria Office and Impax Asset

-0.63

Correlation Coefficient

Alstria Office  Impax Asset

Excellent diversification

The 3 months correlation between Alstria and Impax is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding alstria office REIT AG and Impax Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impax Asset Management 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 Impax Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impax Asset Management has no effect on the direction of Alstria Office i.e., Alstria Office and Impax Asset go up and down completely randomly.

Pair Corralation between Alstria Office and Impax Asset

Assuming the 90 days trading horizon alstria office REIT AG is expected to generate 3.01 times more return on investment than Impax Asset. However, Alstria Office is 3.01 times more volatile than Impax Asset Management. It trades about 0.14 of its potential returns per unit of risk. Impax Asset Management is currently generating about -0.08 per unit of risk. If you would invest  363.00  in alstria office REIT AG on December 25, 2024 and sell it today you would earn a total of  188.00  from holding alstria office REIT AG or generate 51.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.36%
Values	Daily Returns

alstria office REIT AG  vs.  Impax Asset Management

alstria office REIT

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in alstria office REIT AG are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady essential indicators, Alstria Office disclosed solid returns over the last few months and may actually be approaching a breakup point.

Impax Asset Management

Risk-Adjusted Performance

Very Weak

Over the last 90 days Impax Asset Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Alstria Office and Impax Asset

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

The idea behind alstria office REIT AG and Impax Asset Management 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.