Correlation Between SANOK RUBBER and Alstria Office
Can any of the company-specific risk be diversified away by investing in both SANOK RUBBER and Alstria Office 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 SANOK RUBBER and Alstria Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SANOK RUBBER ZY and alstria office REIT AG, you can compare the effects of market volatilities on SANOK RUBBER and Alstria Office 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 SANOK RUBBER with a short position of Alstria Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of SANOK RUBBER and Alstria Office.
Diversification Opportunities for SANOK RUBBER and Alstria Office
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between SANOK and Alstria is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding SANOK RUBBER ZY and alstria office REIT AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on alstria office REIT and SANOK RUBBER 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 SANOK RUBBER ZY are associated (or correlated) with Alstria Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of alstria office REIT has no effect on the direction of SANOK RUBBER i.e., SANOK RUBBER and Alstria Office go up and down completely randomly.
Pair Corralation between SANOK RUBBER and Alstria Office
Assuming the 90 days horizon SANOK RUBBER is expected to generate 11.1 times less return on investment than Alstria Office. But when comparing it to its historical volatility, SANOK RUBBER ZY is 2.32 times less risky than Alstria Office. It trades about 0.06 of its potential returns per unit of risk. alstria office REIT AG is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 604.00 in alstria office REIT AG on September 25, 2024 and sell it today you would earn a total of 156.00 from holding alstria office REIT AG or generate 25.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
SANOK RUBBER ZY vs. alstria office REIT AG
Performance |
Timeline |
SANOK RUBBER ZY |
alstria office REIT |
SANOK RUBBER and Alstria Office Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SANOK RUBBER and Alstria Office
The main advantage of trading using opposite SANOK RUBBER and Alstria Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SANOK RUBBER position performs unexpectedly, Alstria Office 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 Alstria Office will offset losses from the drop in Alstria Office's long position.SANOK RUBBER vs. Dno ASA | SANOK RUBBER vs. DENSO P ADR | SANOK RUBBER vs. Aptiv PLC | SANOK RUBBER vs. PT Astra International |
Alstria Office vs. Materialise NV | Alstria Office vs. SANOK RUBBER ZY | Alstria Office vs. Sumitomo Rubber Industries | Alstria Office vs. Clean Energy Fuels |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |